021047 Pilgrim's Pride Fourth Quarter Results

Pittsburg, TX - Pilgrim's Pride Corporation announced a net loss of $3.2 million, or $0.08 per share, for the fourth fiscal quarter ended September 28, 2002, a $16.1 million decrease compared to net income in the prior year's fourth fiscal quarter of $12.9 million, or $0.32 per share. The Company also announced net sales for the fourth fiscal quarter ended September 28, 2002 of $639.8 million, a $1.5 million decrease compared to the $641.3 million for the same period last year. The fourth fiscal quarter results reflect a $0.05 per share non-recurring tax benefit associated with the tax law changes in Mexico. The Company had previously given guidance that its earnings for the fourth quarter of fiscal 2002 were expected to be a net loss in the range of $0.10 - $0.15 per share.

For fiscal 2002, the Company reported net income of $14.3 million, or $0.35 per share, a $26.8 million decrease when compared to the prior fiscal year's net income of $41.1 million, or $1.00 per share. Net sales for fiscal 2002 were a record $2.5 billion, a 14.4% increase, compared to $2.2 billion for the same period last year, with the increase resulting primarily from the acquisition of WLR Foods, Inc., which was effective January 27, 2001.

"Rising feed costs along with the lower prices realized in the U.S. for dark meat chicken products caused by the effects of the import ban by Russia last spring, along with the previously announced impact of avian influenza in our Eastern Division, were the primary causes of our fourth fiscal quarter of 2002 results being down compared to the prior year. The weakness in commodity prices occurring at a time when our feed costs were rising combined to give the negative results when compared to the prior year's quarter," stated David Van Hoose, Chief Executive Officer, President and Chief Operating Officer for the Company.

Pilgrim's Pride Corporation is the second largest poultry producer in the United States; the third largest in chicken and fifth largest in turkey, and second largest chicken company in Mexico. Pilgrim's Pride employs more than 24,500 persons and operates processing and further processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, North Carolina, Pennsylvania, Virginia, West Virginia and Mexico.

Products are sold to foodservice, retail and frozen entree customers. The Company's primary distribution is through retailers and restaurants throughout the United States and in the Northern and Central regions of Mexico and to the foodservice industry nation-wide in both countries.

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