041120 Pilgrim's Pride Reports Record Earnings For 2004

Pittsburgh, TX - Pilgrim's Pride Corporation today reported record net income of $72.3 million, or $1.09 per share, for the fourth fiscal quarter ended October 2, 2004. Included in the fiscal 2004 fourth quarter earnings is a non-recurring recovery of $23.8 million, or $14.8 million net of tax, or $0.22 per share, attributable to recoveries under a business interruption insurance policy related to the October 2002 recall of certain deli meats by the Company. Excluding this non-recurring recovery, fourth quarter earnings were still a record at $57.5 million, or $0.87 per share. Also included in this quarter's results were turkey restructuring and related charges in the amount of $8.2 million, or $5.1 million net of tax, or $0.08 per share. Excluding the non-recurring recovery and restructuring related items, fourth quarter earnings were $62.6 million, or $0.95 per share.

For fiscal 2004, which ended October 2, 2004, the Company reported record net income of $125.4 million, or $2.00 per share. Included in the fiscal 2004 earnings are non-recurring recoveries of $24.8 million, or $15.4 million net of tax, or $0.25 per share, attributable to recoveries under a business interruption insurance policy related to the October 2002 recall of certain deli meats by the Company and proceeds from settlements of vitamin and methionine antitrust lawsuits. Excluding these non-recurring recoveries, fiscal 2004 earnings were still a record at $110.0 million, or $1.75 per share. Also included in this year's results, were turkey restructuring and related charges in the amount of $72.1 million, or $44.3 million net of tax, or $0.71 per share. Excluding the non- recurring recoveries and restructuring related items, fiscal 2004 earnings were $154.3 million, or $2.46 per share.

The Company is providing 2004 fiscal fourth quarter and annual earnings information excluding non-recurring recoveries and restructuring related information because it believes some investors may be interested in earnings exclusive of these unusual items.

"Our record performance in both the fourth fiscal quarter and annual period ended October 2, 2004 reflects both the successful integration of the ConAgra chicken division acquisition and the benefits of pursuing a growth strategy centered around our Prepared Foods business, which grew more than 25% on a pro forma basis over the past fiscal year," commented O.B. Goolsby, President and Chief Executive Officer of Pilgrim's Pride. "Responding to our customer's growing demand for high-quality, convenient meat proteins will remain a key priority for us going forward. Looking ahead to fiscal 2005, we expect the continuation of favorable consumer trends, rising export demand and projections for a further drop in commodity grain prices to create a positive growth environment that will enable us to continue delivering value to our shareholders," Goolsby concluded.

The results reported today for fiscal 2004's fourth fiscal quarter compare to fiscal 2003's fourth quarter net income of $25.1 million, or $0.61 per share. Included in the fiscal 2003 fourth quarter results was an $11.2 million gain, or $6.3 million net of tax and related employee incentive plan accruals, or $0.15 a share, attributable to proceeds received from the federal government to reimburse for losses incurred due to avian influenza and proceeds from settlements of vitamin and methionine antitrust lawsuits. In addition, the fiscal 2003 fourth quarter included a non-cash reduction of tax expense of $16.9 million, or $0.41 per share, associated with the reversal of a valuation allowance on net operating losses in the Company's Mexico operations. Excluding the non-recurring recoveries and Mexico tax valuation change from the fourth quarter of 2003, earnings would have been $1.9 million, or $0.05 per share.

The results reported today for fiscal 2004 compare to fiscal 2003's net income of $56.0 million, or $1.36 per share. Included in fiscal 2003 results was a $26.6 million gain, or $15.0 million net of tax and related employee incentive plan accruals, or $0.36 a share, which was attributable to proceeds received from the federal government to reimburse for losses incurred due to avian influenza. In addition, fiscal 2003 included a gain of $56.0 million, or $31.6 million net of tax and related employee incentive plan accruals, or $0.77 a share, attributable to proceeds from settlements of vitamin and methionine antitrust lawsuits. In addition, fiscal 2003 included a non-cash reduction of tax expense of $16.9 million or $0.41 per share, associated with the reversal of a valuation allowance on net operating losses in the Company's Mexico operations. Excluding the non-recurring recoveries and Mexico tax valuation change from fiscal 2003 results, earnings would have been $(7.5) million, or $(0.18) per share.

The Company is providing 2003 fiscal fourth quarter and annual earnings information excluding non-recurring recoveries and Mexico tax valuation change because it believes some investors may be interested in earnings exclusive of these unusual items.

The Company also reported record net sales for the fourth fiscal quarter ending October 2, 2004, of $1.49 billion, an increase of $780.5 million, or 110.0%, compared with net sales of $709.5 million for the same period last year, with the increase resulting primarily from the acquisition of ConAgra Foods, Inc.'s Chicken Division, which was effective November 23, 2003, along with positive industry and consumption trends.

The Company also reported record net sales for fiscal 2004 of $5.36 billion, an increase of $2.74 billion, or 104.6%, compared with net sales of $2.62 billion for the same period last year, with the increase resulting primarily from the acquisition of ConAgra Foods, Inc.'s Chicken Division, which was effective November 23, 2003, along with positive industry and consumption trends.

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