Pilgrim's Pride Corporation reported earnings results for the quarter ended June 27, 2009. For the quarter, the company reported a profit of $53.2 million, or 72 cents a share. The company lost $52.7 million, or 75 cents a share, in the year-earlier quarter. Sales fell to $1.77 billion from $2.2 billion.

Pilgrim's Pride Corporation plans to idle its chicken processing plant in Athens, Ala., and one of its two plants in Athens, Ga., within 60-75 days as part of its continuing effort to improve capacity utilization and reduce costs. Production from the Athens, Ala., plant will be consolidated into two other Pilgrim's Pride complexes, bringing those facilities to full capacity. The hatchery in Moulton, Ala., the feed mill in Falkville, Ala., and other live production operations associated with the Athens plant will continue to operate. Approximately 640 employees who work at the Athens, Ala., processing plant will be affected by the plant idling. Pilgrim's Pride expects to be able to offer positions at other facilities to many of these employees. The company will provide transition programs to employees who are not retained in order to assist them in securing new employment, filing for unemployment and obtaining other applicable benefits. Production from the company's Athens, Ga., plant on Oneta St. will be consolidated at the neighboring Barber St. plant as well as at several other company complexes in north Georgia, bringing those facilities to full capacity. The company does not expect any significant reduction in the number of Pilgrim's Pride contract growers in either Athens, Ala., or Athens, Ga., as a direct result of idling these plants.

On July 15, 2009, Pilgrim's Pride Corporation entered into a third amendment to the amended and restated post-petition credit agreement dated December 31, 2008 among the company, as borrower, certain subsidiaries of the company, as guarantors, Bank of Montreal, as agent, and the lenders party thereto. The amendment is subject to the approval of the United States Bankruptcy Court for the Northern District of Texas, Fort Worth Division. The amendment amends the credit agreement to allow the company to invest in certain interest bearing accounts and government securities, subject to certain conditions. In connection with the amendment, the company also agreed to reduce the total available commitments under the credit agreement from $450,000,000 to $350,000,000. The amendment also allows the company to enter into certain ordinary course hedging contracts relating to feed ingredients used by the company and its subsidiaries in their businesses.