JBS 2Q earnings slump 25%
SÁO PAULO, Brazil – Second quarter profits at Brazilian meats company JBS SA dropped 25 percent compared to the year ago quarter.
JBS reported net income of R$254.3 million ($112.2 million) for the second quarter ended June 30, 2014, compared to R$338.5 million ($149.6 million) a year ago. The company said carry costs of derivatives position coupled with a real appreciation impacted the company's financial results.
Net revenues in JBS USA, the company's beef business, was $5,331.4 million, up 10.4 percent compared to a year ago. Higher sales volumes in both domestic and export markets lifted sales, along with higher prices in the domestic market.
JBS USA Pork reported an 18.4 percent increase in net revenues. The segment also benefited from higher sales volumes and higher prices for pork. "Hog supply remained tight and, combined with a strong demand in domestic market and in the main consumer markets such as Hong Kong, Japan and South Korea, contributed to a better pricing of pork in the US," the company said.
Revenues were relatively flat at Pilgrim's Pride Corp. The segment reported revenues of $2,186.8 million compared to $2,184.1 million in the comparable year-ago quarter.
"This quarter results reflect improvements in costs and sales mix, all rooted on operational excellence," the company said. "This year PPC has found significant savings through reduction in corporate expenses and operational costs, and its management is identifying even more areas where it can drive efficiencies."