Pilgrim's revises guidance, restructures

Pilgrim's Pride Corp is lowering its previously issued earnings guidance for its first quarter of fiscal 2006 to a range of $0.36 to $0.41 per share. Results for the quarter are expected to be less due primarily to a worse than expected performance in the company's Mexico operations and lower sales prices on chicken leg quarters in its United States operations.

“We are extremely disappointed with the results realized this quarter by our Mexico operations,” said O B Goolsby, president and chief executive officer of the Pittsburg TX-based poultry producer.

“We also are announcing plans to further restructure our turkey business by ceasing the production of ground turkey and cooked turkey deli breast meat items at our Franconia PA further processing plant effective March 3, 2006,” he said. “After this time, this facility will focus strictly on the Company's profitable refrigerated salads line, and our turkey operations will be limited to fresh and frozen whole turkeys, produced in New Oxford PA.”