JBS, the world's largest meat producer by sales, said it was in an "advanced" stage of talks over the $2.5bn investment in its US division as it unveiled a drop in earnings, and worsening credit metrics.

The Brazilian group has since September been in talks to seal private investment in the US business as part of a plan to secure its finances following takeovers of rival Bertin and American poultry giant Pilgrim's Pride.

The group said it was now "in an advanced process of negotiating" the investment, adding that a stake of up to 26.3% was up for sale.

The Bertin deal is conditional on the stake sale, which JBS said was required "to maintain [group] leverage at its current levels", and will precede revised plans for a stockmarket flotation - expected next year - of the US business.

Argentina 'regret' 

In the July-to-September period, the group's key credit metric - the ratio of net debt to earnings before interest, tax, depreciation and amortisation (ebitda) – deteriorated as the group battled with widening losses at its Argentine division.

"We regret that fact that out Argentine operation is taking longer than expected to return to profitability," Joesley Batista, the JBS chief executive, said, blaming the division's woes largely on weak exports to the US.

The division's underlying loss widened to 89.1m Argentine pesos ($23.4m)in the quarter from 29.2m pesos a year before, dragging group ebitda down 24% to Real$291.9m ($168.3m).

JBS's net debt-to-ebitda ratio widened to 3.3 times from 2.6 times at the end of June.

"The company expects ebitda growth to resume in the fourth quarter and, as a consequence, projects a reduction in leverage levels by the end of the year," the company added.

US performance 

In the US, the group raised ebitda in cattle operations by 3.6% to $108.4m, helped by falling administration and feed costs, but slid by 38% to $15.3m in pork thanks to low sale prices.

Group earnings fell 12.3% to Real$151.5m ($87.4m).

JBS shares, which closed down 6.5% on Thursday ahead of the results, stood 4.2% lower at Real$9.20 in morning trade in Sao Paolo.