* Weaker currency, Pilgrim's Pride recovery boost profit
* JBS reverts year-ago loss, misses estimates as taxes weigh
* EBITDA up 75 pct from year ago, in line with forecast
SAO PAULO, Nov 13 JBS SA, the world's
biggest beef producer, posted a third-quarter profit of 367
million reais ($178 million) on Tuesday, driven by its strong
beef business in Brazil and recovering U.S. poultry operations.
A weaker Brazilian currency also helped JBS recover from a
quarterly loss of 68 million reais a year ago.
The company said it benefited in the last quarter from an
improved cattle cycle in Brazil, which has made more animals
available for slaughter. JBS has also expanded its beef
processing capacity in Brazil by 8,000 heads per day.
JBS's Mercosul unit, which includes its operations in
Brazil, Argentina, Uruguay and Paraguay, slaughtered 2.03
million heads of cattle in the quarter, compared to 1.72 million
heads in the same period a year ago.
Third quarter profit missed a 404 million reais average
estimate in a Reuters poll of analysts, as tax liabilities from
recent acquisitions weighed on the bottom line.
JBS started out as a family butcher in Brazil and shot to
the top spot in beef globally through an aggressive takeover
strategy, which it has recently resumed. JBS bought local
poultry producer Agrovento in November after leasing Frangosul
assets controlled by French poultry producer Doux earlier in the
JBS's U.S. chicken unit Pilgrims Pride Corp.
reversed a year-ago loss despite a sharp rise in corn prices in
the period thanks to cost reduction measures. Brazil's currency,
the real, was also 14 percent weaker in September than a
year earlier, boosting U.S. revenues in local terms.
Earnings before interest, tax, depreciation and
amortization, a gauge of operating profit known as EBITDA, rose
75 percent from a year ago to 1.38 billion reais in the quarter,
in line with analysts' estimates.
JBS said in a separate filing that its board of directors
had approved the incorporation of subsidiary Cascavel Couros, a
leather processing factory, and said it expected annual savings
of $10 million through resulting tax gains and cost reductions.