Pilgrim's Pride signalled it may reopen one of its axed plants, and placed further factory closures off the agenda, as the restructured poultry group revealed a third successive quarter in the black.

The US-based company said that production cuts among poultry producers, forced by the downturn which drove Pilgrim's into bankruptcy in late 2008, had cut the market's oversupply.  

"Strong export demand helped keep supplies tight during the quarter," the group, now controlled by Brazilian meat giant JBS, said.

The squeeze, also evident in low level of poultry inventories in US cold stores, had been reflected in the prices of breast meat, which rose by 8% in the three months to December 27, and wings, which jumped 37%, although prices for leg quarters declined.

Meanwhile, weaker crop markets lowered the company's feed costs by 20%, or $120m, year on year.

Move upmarket 

Although production cuts in a restructuring undertaken during Pilgrim's year in bankruptcy cut revenues by 14.9% to $1.60bn, the group returned to the black for the quarter with earnings of $33.6m.

A year before, the group ran up an after-tax loss of $228.8m.

"Our financial results have improved dramatically," Don Jackson, the Pilgrim's chief executive, said.

He added: "Today our business strategy is clear. We are squarely focused on being a market-driven company. We have reduced our production of commodity chicken and are targeting higher-margin products."

The group had already made small increases to production capacity, prompted by demand from new customers, he said.

Nonetheless, the result reflected a one-off tax benefit of $102.4m, relating to operating losses carried forward from past quarters.

The company's shares stood 2.2% lower at $8.71 on a weak day for shares worldwide, following a surprise rise in US jobless claims.