Pilgrim’s Pride’s 2Q profit climbs 27 percent

GREELEY — Pilgrim’s Pride Corp. (Nasdaq: PPC) on Wednesday reported a 27 percent increase in profit for its second quarter that ended June 28 compared with the same quarter a year ago.

The Greeley-based operator of chicken-processing plants and prepared-foods facilities posted a profit of $241.5 million on $2.05 billion in sales for the quarter compared with a profit of $190.4 million on sales of $2.2 billion during the same quarter a year ago.

Income per share for the quarter was 93 cents compared with 73 cents for the same quarter a year ago.

Bill Lovette, chief executive of Pilgrim’s, said in a prepared statement that despite ongoing export challenges during the quarter “our team has once again delivered solid results.

“We are on target to achieve $200 million in operational improvements for the year,” he said. “During Q2 we completed investment projects at two of our plants that negatively impacted quarterly production volumes, but should result in improved efficiencies and enhanced sales mix opportunities.”

He added that the company’s growth in Mexican operations through acquisition and greenfields (building on vacant land) will “complement our existing facilities in the region, and make us a stronger player by improving our geographical coverage and serve the future growing needs of that market.”

The company also announced on Wednesday that its board of directors authorized the repurchase of $150 million of its common stock over the next 12 months. The company plans to implement the program through various means, which may include but are not limited to open-market purchases, privately negotiated transactions, the use of derivative instruments and/or accelerated share repurchase programs. Its stock was trading at $20.21 per share after hours Wednesday.

Pilgrim’s employs approximately 39,300 people in 12 states, Puerto Rico and Mexico.

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