JBS doubles earnings in 2014 despite weaker 4th quarter

GREELEY – Brazilian meatpacker JBS S.A. (Bovespa: JBSS3), the parent company of Greeley-based JBS USA, earned $650 million in 2014, despite a weak fourth quarter where earnings, at $197 million, were 43 percent lower than the same quarter a year earlier.

JBS S.A. overall performance improved thanks to higher revenue from its chicken, beef and other divisions. For the year, JBS earned $650 million, more than double the $295 million it earned in 2013.

The company reported $38 billion in revenue last year, up from $30 billion the prior year.

JBS USA Beef earnings before interest, taxes, depreciation and amortization totaled $916 million in 2014 up from $376 million in 2013. JBS USA’s beef division includes a Greeley beef processing plant capable of processing 5,400 cattle daily.

At Pilgrim’s Pride Corp. (Nasdaq: PPC), JBS’ U.S. chicken unit in which the company owns a controlling interest, 2014 earnings before interest, taxes, depreciation and amortization rose to $1.3 billion from $810 million.

Revenue from JBS USA’s beef division grew to $21.6 billion from $18.6 billion. Pilgrim’s Pride revenue rose to $2.2 billion in 2014 from $2 billion in 2013.

“Our results for 2014 show that we are going in the right direction,” JBS CEO Wesley Batista said in an earnings statement. “In 2015, we will prioritize organic growth and focus on all aspects of improving our financial metrics, thus creating incremental value for our shareholders.”

During the fourth quarter, JBS earned $197 million versus $348 million during the same quarter a year earlier.

JBS posted $10.9 billion in revenue during the fourth quarter, compared with $8.7 billion during the same quarter the prior year.

“We observed a consistent recovery of the American economy through our US operations,” Batista said. “The reduction in the cost of energy and a consequent improvement in disposable income of Americans’ households should positively influence protein consumption in that market.”

JBS USA Beef’s fourth-quarter earnings before interest, taxes, depreciation and amortization dropped to $325 million during the period from $505 million. JBS USA Beef revenue totaled $5.9 billion for the quarter, up from $5.8 billion during the fourth quarter of 2013.

Pilgrim’s Pride earnings before interest, taxes, depreciation and amortization totaled $368 million, down from $435 million during the same quarter a year earlier.

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