001105 Pilgrim's Pride Fiscal 2000 Results

Pittsburg, TX - Pilgrim's Pride Corporation announced net income of $11.3 million, or $.28 per share, for the fourth fiscal quarter ended September 30, 2000, a decrease of 31.1%, compared to the prior year's fourth quarter of $16.4 million, or $.40 per share. The Company also announced net sales of $379.3 million for the fourth fiscal quarter, a 9.2% increase, compared to the $347.3 million for the same period last year.

For fiscal 2000, the Company reported net income of $52.3 million, or $1.27 per share, a decrease of 19.8%, compared to the prior fiscal year's net income of $65.3 million, or $1.58 per share. During the second fiscal quarter, the Company wrote off $5.8 million, $3.3 million net of tax, of accounts receivable due to the January 31, 2000 bankruptcy filing of AmeriServe. Excluding this charge to earnings, fiscal 2000 net income was $55.6 million, or $1.35 per share. Net sales for fiscal 2000 were a record high of $1.5 billion, a 10.5% increase, compared to $1.4 billion for the same period last year. The Company's accounting cycle resulted in 52 weeks of operations in fiscal 2000; when adjusting for this and the AmeriServe charge, the Company's fiscal 2000 earnings would have decreased by 13.3% from the prior year's earnings. The prior year per share amounts have been adjusted to give effect to a stock dividend issued on July 30, 1999.

During fiscal 2000, the Company re-purchased $1.6 million of its Class A Common Stock on the open market under its Share Repurchase program previously announced.

On September 27, 2000, the Company announced its intention to purchase all of the outstanding stock of WLR Foods, Inc., a Virginia based company, in a cash merger for $14.25 per share. The merger is subject to customary closing conditions, including the receipt of regulatory approval and the approval of WLR Foods' shareholders. The date of the WLR Foods' shareholder vote is currently anticipated to occur in January, 2001, with closing of the transaction to proceed shortly thereafter.

“We are pleased with our results for the fourth fiscal quarter as well as for the entire fiscal year 2000,” stated David Van Hoose, Chief Executive Officer, President and Chief Operating Officer for the Company. “The ability of our Company to register its second most profitable year in our Company's history is extremely gratifying considering the difficult sales environment this past year, and the increases we have made in our production capacities will positively impact future operating results as sales prices recover. Going forward, we will continue to make investments in those lines of business that have helped us to differentiate ourselves from our competitors and are excited about the opportunities we see ahead resulting from the WLR Foods' acquisition.”

Pilgrim's Pride Corporation is currently the fifth largest chicken company in the United States and second largest in Mexico. Pilgrim's Pride employs more than 15,500 persons and operates processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, Oklahoma and Mexico.

Products are sold under the “Pilgrim's Pride” label to foodservice, retail and frozen entree customers. The Company's primary distribution is through retailers and restaurants in Central, Southwestern and Western Regions of the United States and the Northern and Central regions of Mexico and to the foodservice industry nation-wide in both countries.

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