Gold Kist Net Income Doubles

NEW YORK - Feb 6/06 - SNS -- Gold Kist Inc. reported net income of U.S. $4.193 million on sales of $551.958 million for the first quarter ending January 1, compared to a net of $2.543 million on sales of $545.36 million during the same three month period last year.

John Bekkers, president and chief executive officer, said, "Given the downturn in the market during the quarter compounded by higher energy costs, results for the first quarter of 2006 were disappointing, but not completely unexpected.

"Sales for the quarter were down slightly from the first quarter of fiscal 2005 ended January 1, 2005, due primarily to a 1.8% decrease in average broiler prices. Concerns in the export markets about avian influenza reduced consumption in those markets, which decreased export volume, particularly to Russia, and contributed to greater domestic supply and lower prices.

"Processing costs increased during the first quarter of fiscal 2006 due to additional pounds processed and due to higher utilities, freight and packaging costs. These increases were partially offset by lower feed ingredient costs, which were 1.4% lower for the first quarter of fiscal 2006 compared with the same period last year."

Subscribers can read the full text of the article by Clicking here