EX-12 3 ex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES Computation of Ratio of Earnings to Fixed Charges

EXHIBIT 12
PILGRIM'S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


   
Year Ended
  
   
October 2,
2004
  
September 27,
2003
  
September 28,
2002
  
September 29,
2001
  
September 30,
2000
  
   
(amounts in thousands, except ratio)
  
EARNINGS:
                     
Income before income taxes
        
$
208,535
        
$
63,235
        
$
1,910
        
$
61,861
        
$
62,786
  
                                                               
Add: Total fixed charges (see below)
          
68,675
          
51,126
          
49,801
          
48,406
          
29,168
  
Less: Interest Capitalized
          
(1,714
)
        
(1,535
)
        
(6,014
)
        
(7,153
)
        
(3,313
)
Total Earnings
        
$
275,496
        
$
112,826
        
$
45,697
        
$
103,114
        
$
88,641
  
                                                               
FIXED CHARGES:
                                                             
Interest (1)
        
$
57,657
        
$
41,835
        
$
40,444
        
$
38,852
        
$
21,712
  
Portion of rental expense representative of the
interest factor (2)
          
11,018
          
9,291
          
9,357
          
9,554
          
7,456
  
Total fixed charges
        
$
68,675
        
$
51,126
        
$
49,801
        
$
48,406
        
$
29,168
  
Ratio of earnings to fixed charges
          
4.01
          
2.20
          
(3
)
        
2.13
          
3.04
  
             
(1) Interest includes amortization of capitalized financing fees.
(2) One-third of rental expenses is assumed to be representative of the interest factor.
(3) Earnings were insufficient to cover fixed charges by $4,104.