August 15, 2018 / 1:03 AM / 2 months ago

UPDATE 1-Brazil's JBS posts wider loss as forex, truckers' strike weigh

(Recasts with effect of truckers strike)

SAO PAULO, Aug 14(Reuters) - Brazilian meatpacker JBS SA posted a wider-than-expected net loss in the second quarter as a truckers strike in May and a sharp rise in currency-related charges affected the results.

In a securities filing on Tuesday, JBS reported a 826.9 million real ($213.88 million) net loss in the period, greater than the 144 million real loss in a Thomson Reuters consensus estimate.

The company booked a one-off 113 million real loss related to the truckers’ strike, which paralyzed Brazil’s roads for 11 days, and a 113 percent rise in total financial expenses to 4.72 billion reais in the quarter, according to the filing.

Issues affecting JBS’s Seara processed food division in Brazil and its pork and chicken businesses in the United States also weighed, the filing showed.

Seara’s net revenue fell by 5.4 percent to 4 billion reais after a Russian ban on Brazilian pork meat imports and the effects of the truckers’ strike reduced sales volumes. Exports at Seara fell by 19 percent last quarter, it said.

Ongoing pressure on JBS’s U.S. pork business also hit the company, which reported a 6.3 percent drop in net revenue at that division to $1.43 billion.

At the same time, JBS’s Pilgrim’s Pride division recorded the sharpest margin contraction of all its units, a 6.35 basis point fall, the filing showed.

In a note to clients, Barclays analysts Benjamin Theurer and Antonio Hernandez had anticipated results could be affected by the weak chicken consumption environment in the United States and weaknesses at the Seara and the U.S. pork businesses. ($1 = 3.8662 reais) (Reporting by Ana Mano Editing by Sandra Maler)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below