000321 Pilgrim's Pride Statement on 2nd Quarter's EarningsMarch 11, 2000Pittsburg, TX - Pilgrim's Pride Corporation stated that in-light of the Chapter 11 bankruptcy filing on January 31, 2000 by AmeriServe in Wilmington, Delaware, the ice storm losses incurred on January 27-28, 2000 and the generally weaker chicken markets being experienced currently in the U.S., they would not meet the consensus estimates of $.32 per share for their second quarter ending on April 1, 2000. At this time, the Company anticipates their second quarter's earnings will be in the range of $6.2-$8.3 million or $.15-$.20 per share. As has been reported, AmeriServe is a significant distributor of products to several fast food and casual dining restaurant chains, several of which are customers of Pilgrim's Pride Corporation. At the time of the Chapter 11 filing, Pilgrim's Pride Corporation had extended approximately $6 million in trade credit to AmeriServe all of which will be reserved in the second quarter and decreasing reportable earnings by approximately $.09 per share on an after-tax basis. The Company has reached the necessary post-reorganization agreements with its customers supplied by AmeriServe to continue distribution of its products and does not believe that the reorganization filing by AmeriServe will materially adverse effect the distribution of its products on a going-forward basis. The Company estimates that losses realized from the late January ice storm will negatively affect second quarter pre-tax earnings by approximately $2 million or $.03 per share on an after-tax basis.
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