UPDATE 1-Pilgrim's Pride sees loss for fiscal third quarter

(Adds fourth-quarter outlook, background)

CHICAGO, May 5 (Reuters) - U.S. chicken producer Pilgrim's Pride Corp (PPC.N: Quote, Profile, Research, Stock Buzz) said it may be a year before it returns to normal operating profit margins, adding that it would likely post a loss in the fiscal third quarter because of the cost of feed.

"We believe that our U.S. business will continue to be unprofitable for much if not all the fiscal third quarter," Pilgrim's Pride Chief Financial Officer Richard Cogdill said during a conference call with Wall Street analysts.

On Monday, the Pittsburg, Texas-based company reported a larger-than-expected loss for the second quarter that ended March 29 of $111.4 million, or $1.67 per share.

Pilgrim's Pride, like its competitors, has been struggling with sharply higher feed prices and has cut production and raised meat prices to cope with the higher costs.

There is a chance for a profit in fiscal fourth quarter providing industry-wide production cutbacks continue and feed costs stabilize, Cogdill said.

Pilgrim's Pride has said it will close a production facility and reduce chicken production by 5 percent in reaction to the higher feed prices.

While U.S. Agriculture Department figures show the industry as a whole is slowly reducing production, not everyone is cutting back. Tyson Foods Inc. (TSN.N: Quote, Profile, Research, Stock Buzz), the No. 2 producer, said last week it will not cut chicken production and Sanderson Farms Inc. (SAFM.O: Quote, Profile, Research, Stock Buzz), the No. 4 producer, said in March it was not cutting back. (Reporting by Bob Burgdorfer, editing by Dave Zimmerman)