Gold Kist reports loss, cuts production
Gold Kist has posted a net loss of $17.7 million on
$2.1 billion in revenue for the 2006 financial year, compared with net income of
$112.2 million on $2.3 billion in revenue in fiscal 2005.
Loss per share was 35 cents, compared with earnings of $2.22 a share in
"Conditions in the poultry industry changed significantly in fiscal 2006
following the two best years in the company's history," said John Bekkers,
president and CEO.
"In fiscal 2006, an oversupply of broilers and competing meats led to a
decline in broiler prices [of 8.3 percent]. We believe concern about avian
in export markets was the primary cause for reduced consumption in
those markets, which further contributed to greater domestic supply and lower
sales prices for the year."
an extra 1.75 percent reduction in broiler placements, resulting in a total
reduction of 5 percent, or 700,000 chickens per week compared to 2005.
has also reported a net loss of $34.2 million on $5.2 billion in
revenue for fiscal 2006, compared with net income of $265 million on $5.7
billion in revenue in fiscal 2005.
In October, Gold
Kist rejected Pilgrim's Pride's takeover bid
and filed a lawsuit to stop the
company from proceeding with its "unlawful solicitation" of Gold Kist
stockholders to add its own officers to Gold Kist's board. Gold Kist maintains
Pilgrim's Pride's offer to buy out Gold Kist's stock at $20 a share is
"inadequate" and "not in the best interests of stockholders."
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