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PILGRIM'S PRIDE SIGNS STOCK PURCHASE AGREEMENT WITH ARCHER DANIELS MIDLAND COMPANY AND ANNOUNCES FINANCIAL RESULTS

 PILGRIM'S PRIDE SIGNS STOCK PURCHASE AGREEMENT WITH
 ARCHER DANIELS MIDLAND COMPANY AND ANNOUNCES FINANCIAL RESULTS
 PITTSBURG, Texas, May 12 /PRNewswire/ -- Pilgrim's Pride Corporation (NYSE: CHX) today announces that it has signed a stock purchase agreement with Archer Daniels Midland Company (NYSE: ADM) for the purchase of 5 million shares of Pilgrim's Pride Corporation common stock at a purchase price of $6.00 per share adding $30 million in equity to Pilgrim's Pride. Although the shares to be purchased would represent approximately 18 percent of Pilgrim's Pride's outstanding common stock after issuance, Archer Daniels has agreed not to acquire more than 20 percent of the common stock without the prior approval of Pilgrim's Pride. As a condition to the stock purchase, Pilgrim's Pride's principal stockholder has agreed to indemnify Archer Daniels against loss incurred on its investment during a defined period. The stock purchase agreement, which is subject to the fulfillment of certain conditions, including regulatory approvals, is expected to be closed before July 31, 1992. Lonnie A. "Bo" Pilgrim, chief executive officer of Pilgrim's Pride Corporation stated the new equity added to the company's existing resources will favorably enhance its balance sheet and financing alternatives.
 Archer Daniels Midland Company, with annual sales of more than $8 billion, is a processor and merchandiser of agricultural products and supplies several products to Pilgrim's Pride.
 Pilgrim's Pride Corporation also today reports net sales of $205.5 million for the quarter ended March 28, 1992, a 2.1 percent increase for the quarter compared to $201.3 million during the same period in 1991. The company reports a net loss of $8.7 million or $.39 per share for the second quarter of 1992 compared to a net profit of $5.2 million or $.23 per share for the same quarter in 1991.
 For the six months ended March 28, 1992, the company reports net sales of $401.0 million, a 3.6 percent increase for the period compared to $387.0 million for the same period last year. The company reports a net loss of $12.9 million or $.57 per share for the first six months of 1992 compared to net profit of $6.3 million or $.28 per share for the same period in 1991.
 According to Bo Pilgrim, the losses during the second quarter and first six months were caused mainly by continued declines in poultry prices and increased production costs.
 Pilgrim's Pride Corporation has obtained waivers from the company's major secured lenders for non-compliance with several financial covenants at March 28, 1992. Under the waivers, Pilgrim's Pride must meet certain modified financial covenants at various dates within the remainder of its current fiscal year. Management is studying various plans to refinance its indebtedness to meet the modified financial covenants which may include the issuance of private or public subordinated debt. The completion of the $30 million equity infusion mentioned above will be an integral part of any such refinancing.
 Pilgrim's Pride Corporation is the fifth largest producer of poultry products and the 21st largest egg producer in the United States, producing more than 1.1 billion pounds of dressed poultry and 41 million dozen table eggs annually. Pilgrim's Pride employs more than 10,500 persons internationally and operates processing plants, distribution centers, hatcheries and feed mills in Texas, Arkansas, Arizona, Oklahoma and Mexico.
 Products are sold under the "Pilgrim's Pride" label to supermarkets, wholesale clubs and food service customers. The company's primary domestic distribution is through retailers and restaurants in Central, Southwestern and Western United States and through the food service industry nationally.
 PILGRIM'S PRIDE CORPORATION
 CONDENSED CONSOLIDATED
 BALANCE SHEETS (UNAUDITED)
 (In Thousands)
 March 28 September 28
 1992 1991
 ASSETS
 Total Current assets $160,403 $147,833
 Other assets 10,025 10,165
 Property Plant and
 Equipment, net 269,983 270,092
 Total assets $440,411 $428,090
 LIABILITIES AND SHAREHOLDERS' EQUITY
 Total Current Liabilities $160,952 $102,951
 Long term debt-Less
 Current Portion 146,798 175,776
 Deferred Income Taxes 33,875 37,010
 Total Shareholders' equity 98,786 112,353
 Total Liabilities and
 Shareholders' equity $440,411 $428,090
 PILGRIM'S PRIDE CORPORATION
 CONDENSED CONSOLIDATED
 STATEMENTS OF CASH FLOWS (UNAUDITED)
 (In Thousands)
 Six Months Ended March 28 March 30
 1992 1991
 Operations:
 Net cash flow provided by
 (used in) operating
 activities $ (14,416) $ 8,514
 Cash flows from investing
 activities:
 Acquisitions of property
 and equipment (11,498) (34,865)
 Other 295 2,491
 Net cash flows used in
 investing activities (11,203) (32,374)
 Cash flows from financing activities:
 Net increase in notes
 payable 30,000 18,000
 Net (payments on) proceeds
 from long term debt (5,051) 3,276
 Cash dividends (678) (678)
 Net cash provided by
 financing activities 24,271 20,598
 Net decrease in cash and
 cash equivalents $ (1,348) $ (3,262)
 PILGRIM'S PRIDE CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 (In thousands, except share and per share amounts)
 Three Months Ended March 28 March 30
 1992 1991
 Net sales $ 205,540 $ 201,274
 Costs and expenses:
 Cost of sales 199,983 176,882
 Selling, general and
 administrative 10,595 12,794
 Total 210,578 189,676
 Operating income (loss) (5,038) 11,598
 Other expense (income):
 Interest expense, net 5,237 4,879
 Miscellaneous 247 (377)
 Total other expense, net 5,484 4,502
 Income (loss) before income
 taxes (10,522) 7,096
 Income tax expense (benefit) (1,825) 1,888
 Net income (loss) $ (8,697) $ 5,208
 Net income (loss) per share $ (.39) $ .23
 Dividends per share $ .015 $ .015
 Average shares outstanding 22,589,250 22,589,250
 PILGRIM'S PRIDE CORPORATION
 CONSOLIDATED STATEMENTS OF INCOME
 (UNAUDITED)
 (In thousands, except share and per share amounts)
 Six Months Ended March 28 March 30
 1992 1991
 Net sales $ 401,031 $ 387,034
 Costs and expenses:
 Cost of sales 384,342 345,354
 Selling, general and
 administrative 22,190 23,860
 Total 406,532 369,214
 Operating income (loss) (5,501) 17,820
 Other expense (income):
 Interest expense, net 10,787 9,716
 Miscellaneous (175) (659)
 Total other expense, net 10,612 9,057
 Income (loss) before income
 taxes (16,113) 8,763
 Income tax expense (benefit) (3,223) 2,454
 Net income (loss) $ (12,890) $ 6,309
 Net income (loss) per share $ (.57) $ .28
 Dividends per share $ .03 $ .03
 Average shares outstanding 22,589,250 22,589,250
 -0- 5/12/92
 /CONTACT: Cliff Butler of Pilgrim's Pride, 903-856-7901/
 (CHX) CO: Pilgrim's Pride Corporation ST: Texas IN: FOD SU: ERN


KD -- NY116 -- 9394 05/12/92 18:07 EDT
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Date:May 12, 1992
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