The Pittsburg, Texas-based company, which is the biggest chicken supplier in the US and the second-biggest in Mexico, reported a pre-tax loss of $76.8m in the quarter to June 28, compared with profit of £100m the previous year. Revenue rose to $2.2bn from $2.1bn.
"Our financial results in the third quarter of fiscal 2008 reflect the significant headwinds facing our company and industry from high feed costs," said Clint Rivers, president and chief executive.
"We have worked diligently to pass along price increases to our customers to help offset the impact of record-high corn and soybean meal costs, but, like other producers, we simply have not been able to keep pace with the extreme price volatility in the grain markets."
"We believe that high grain costs will continue to exert pressure on our financial results in the fourth quarter of fiscal 2008, resulting in the continuation of operating losses," Rivers said.
High chicken feed costs were also reflected in meat supplier Tyson Foods' quarterly results yesterday. The firm's operating profit for the quarter fell to $45m from $212m, as chicken operations posted losses of $44m compared with a profit of $95m over the same period a year ago.
Source: http://uk.biz.yahoo.com/080729/214/i3zt7.html
