TSN Tyson Foods

Pilgrim's Pride Corp.'s third-quarter profit fell sharply as the chicken producer reported lower sales, hurt by export restrictions following a bird-flu outbreak.

"Although we expect export markets to gradually reopen soon depending on the domestic (avian influenza) situation," Chief Executive Bill Lovette said in a news release, "we continue to seek alternative and creative ways to reduce our dependencies on commodity products to produce more consistent margins by sharpening our focus on high growth markets."

Mr. Lovette didn't elaborate on the company's plans.

Shares, down 41% this year, fell 6.1% to $18.20 in late trading.

The worst outbreak on record in the U.S., killing more than 48 million birds, has hurt demand and triggered import bans abroad.

The last case was reported in June, but companies and regulators are getting ready for a possible return of the virus.

A unit of Brazilian meat processor JBS SA and the second-largest poultry processor by sales in the U.S., behind Tyson Foods Inc., Pilgrim's operates chicken-processing plants and prepared-foods facilities in 12 states, Puerto Rico and Mexico.

Over all, for the period ended Sept. 27, Pilgrim's Pride reported a profit of $137.1 million, or 53 cents a share, compared with $256 million, or 99 cents a share, a year earlier.

Revenue fell 6.9% to $2.11 billion.

Analysts surveyed by Thomson Reuters expected 72 cents and revenue of $2.21 billion.

Gross margin narrowed to 13.5% from 19.9% a year earlier.

Domestic sales, which account for the bulk of Pilgrim's business, fell 11% in the latest period, while sales in Mexico rose 30%.

Company officials are expected to release additional details Thursday morning during a conference call with analysts.

Write to Maria Armental at maria.armental@wsj.com

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(END) Dow Jones Newswires

October 28, 2015 20:25 ET (00:25 GMT)

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