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Home > BizBuzz > Archives > 2008 > July > 16 > Entry

Wall Street responds favorably to Pilgrim’s cuts

The Wall Street crowd evidently viewed favorably Tuesday’s announcement by Pittsburg-headquartered Pilgrim’s Pride it was taking more steps to cut costs.

Pilgrim’s Pride stock jumped 7 percent in trading Wednesday and closed at $15.59. That was up by $1.02 per share from Tuesday’s close and represents the first time the company’s stock edged above the $15 a share mark in nearly a month.

Pilgrim’s stock was riding a rapid downward trajectory since May 28 when it closed at $26.85. Shares bottomed out at $11.25 on July 8 and have been inching mainly upward since then.

The company, hard hit by record high prices for chicken feed, announced production cuts of 5 percent in June. On Tuesday, Pilgrim’s announced it was cutting its work force at an El Dorado plant by 600 jobs and closing an El Paso distribution center where another 34 people worked.

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