 View printer-friendly version | | << Back | | Pilgrim's Pride to Close Processing Facility in Dalton, Ga., as Part of Reorganization | PITTSBURG, Texas, April 13 /PRNewswire-FirstCall/ -- Pilgrim's Pride
Corporation (Pink Sheets: PGPDQ) today announced plans to close its chicken
processing plant in Dalton, Ga., within 60 days and consolidate production at
the company's processing facility in Chattanooga, Tenn. These actions are
aimed at improving the company's capacity utilization and reducing its costs.
Approximately 280 employees who work at the Dalton plant will be affected
by the closing. Pilgrim's Pride will provide transition programs to employees
whose positions are eliminated to assist them in securing new employment,
filing for unemployment and obtaining other applicable benefits. The hatchery
in Cohutta, Ga., will continue to operate. Other live production operations
will also continue to function, but as a part of the Chattanooga complex or
other nearby operations. Approximately 120 independent contract growers who
currently supply birds to the Dalton processing plant will be transitioned to
begin supplying the company's Chattanooga plant or other nearby company
facilities within approximately 90 days.
There will not be any disruption in the supply of product to retail,
foodservice and industrial customers as a result of closing the Dalton
facility.
"The closing of the Dalton plant is part of our plan to maximize our
capacity utilization and operate more efficiently as a market-driven company,"
said Don Jackson, president and chief executive officer. "We will continue to
look for opportunities to improve our cost structure as we reorganize the
company. While the decision to eliminate jobs is always painful, we are
taking decisive steps now to protect the greatest number of jobs in order to
restructure our business and ultimately emerge from Chapter 11 as a stronger,
more efficient competitor."
As previously announced, the Company filed voluntary Chapter 11 petitions
on December 1, 2008. The Chapter 11 cases are being jointly administered
under case number 08-45664. The Company's operations in Mexico and certain
operations in the United States were not included in the filing and continue
to operate as usual outside of the Chapter 11 process.
Additional information about the restructuring is available at the
Company's website www.pilgrimspride.com or via the Company's restructuring
information line at (888) 830-4659.
About Pilgrim's Pride
Pilgrim's Pride Corporation employs approximately 47,000 people and
operates chicken processing plants and prepared-foods facilities in 14 states,
Puerto Rico and Mexico. The Company's primary distribution is through
retailers and foodservice distributors. For more information, please visit
http://www.pilgrimspride.com.
Forward-Looking Statements
Statements contained in this press release that state the intentions,
plans, hopes, beliefs, anticipations, expectations or predictions of the
future of Pilgrim's Pride Corporation and its management, including as to
expectations as to the reorganization of the Company's business and finances
to resolve its operational and liquidity issues, expectations to emerge from
Chapter 11 proceedings stronger and more competitive, the sufficiency of
liquidity to be provided by the debtor-in-possession financing facility,
anticipated authorizations being requested of the Bankruptcy Court, including
in respect of approval of the proposed sale of the Farmerville, La., chicken
complex, and expectations as to the ability to make post-petition payments,
are forward-looking statements. It is important to note that the actual
results could differ materially from those projected in such forward-looking
statements. Factors that could cause actual results to differ materially from
those projected in such forward-looking statements include: the Company's
ability to obtain court approval with respect to its motions in the Chapter 11
proceedings; the ability of the Company and its subsidiaries to prosecute,
develop and consummate one or more plans of reorganization with respect to the
Chapter 11 proceedings; risks associated with third party motions in the
Chapter 11 proceedings, which may interfere with the Company's ability to
develop and consummate one or more plans of reorganization; the potential
adverse effects of the Chapter 11 proceedings on the Company's liquidity or
results of operations; matters affecting the poultry industry generally;
continued compliance with conditions for funding under the
debtor-in-possession financing facility; the ability to execute the Company's
business and restructuring plan to achieve desired cost savings and additional
capital to improve liquidity; future pricing for feed ingredients and the
Company's products; additional outbreaks of avian influenza or other diseases,
either in the Company's flocks or elsewhere, affecting the Company's ability
to conduct its operations and/or demand for its poultry products;
contamination of the Company's products, which has previously and can in the
future lead to product liability claims and product recalls; exposure to risks
related to product liability, product recalls, property damage and injuries to
persons, for which insurance coverage is expensive, limited and potentially
inadequate; management of cash resources, particularly in light of the
Company's substantial leverage; restrictions imposed by, and as a result of,
the Company's substantial leverage; changes in laws or regulations affecting
the Company's operations or the application thereof; new immigration
legislation or increased enforcement efforts in connection with existing
immigration legislation that cause the costs of doing business to increase,
cause the Company to change the way in which it does business, or otherwise
disrupt its operations; competitive factors and pricing pressures or the loss
of one or more of the Company's largest customers; currency exchange rate
fluctuations, trade barriers, exchange controls, expropriation and other risks
associated with foreign operations; disruptions in international markets and
distribution channels; and the impact of uncertainties of litigation as well
as other risks described under "Risk Factors" in the Company's Annual Report
on Form 10-K and subsequent filings with the Securities and Exchange
Commission. Pilgrim's Pride Corporation undertakes no obligation to update or
revise publicly any forward-looking statements, whether as a result of new
information, future events or otherwise.
Media Contact: Ray Atkinson
(903) 434-1811
Investor Contacts: Gary Rhodes
(903) 434-1495
Patrick Barth
(903) 434-1838
SOURCE Pilgrim's Pride Corporation
04/13/2009
CONTACT: media, Ray Atkinson, +1-903-434-1811, or investors, Gary
Rhodes, +1-903-434-1495, or Patrick Barth, +1-903-434-1838, all of Pilgrim's
Pride Corporation
/Web Site: http://www.pilgrimspride.com
(PGPDQ PGPDQ.PK)
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Safe Harbor Statement:
Statements contained in this webcast that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim's Pride Corporation and its management, including as to business strategy, growth strategy and expected benefits of the acquisition of Gold Kist, are forward-looking statements. It is important to note that the actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: matters affecting the poultry industry generally, including fluctuations in the commodity prices of feed ingredients, chicken and turkey; additional outbreaks of avian influenza or other diseases, either in our own flocks or elsewhere, affecting our ability to conduct our operations and/or demand for our poultry products; contamination of our products, which has in the past and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; changes in laws or regulations affecting our operations or the application thereof; competitive factors and pricing pressures or the loss of one or more of our largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; management of our cash resources, particularly in light of our leverage, and restrictions imposed by and as a result of, our leverage; inability to effectively integrate Gold Kist's business or realize the associated cost savings and operating synergies currently anticipated; and the impact of uncertainties of litigation as well as other risks described under "Risk Factors" in our Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission. Pilgrim's Pride Corporation undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. This webcast does not constitute an offer to purchase any securities, nor a solicitation of a proxy, consent, authorization or agent designation with respect to a meeting of Company's stockholders. |
