EX-12 7 ex12.htm COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES ex12.htm

EXHIBIT 12
PILGRIM'S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES


   
Year Ended
  
   
September 29,
2007
    
September 30,
2006
    
October 1,
2005
    
October 2,
2004
    
September 27,
2003
  
   
(amounts in thousands, except ratio)
  
EARNINGS:
                              
Income before income taxes
   $ 91,607     $ (36,317 )   $ 403,523     $ 208,535     $ 63,235  
                                         
Add:  Total fixed charges  (see below)
    
149,493
      
67,172
      
64,735
      
67,168
      
49,647
  
Less:  Interest capitalized
     (5,736 )     (4,298 )     (2,841 )     (1,714 )     (1,535 )
Total earnings
   $ 235,364     $ 26,557     $ 465,417     $ 273,989     $ 111,347  
                                         
FIXED CHARGES:
                                        
Interest (a)
   $ 131,493     $ 54,899     $ 52,426      
56,150
     $ 40,356  
Portion of rental expense representative of the interest factor (b)
    
18,000
      
12,273
      
12,309
      
11,018
      
9,291
  
Total fixed charges
   $ 149,493     $ 67,172     $ 64,735     $ 67,168     $ 49,647  
Ratio of earnings to fixed charges
    
1.57
    
(c)
      
7.19
      
4.08
      
2.24
  
                                         
(a) Interest includes amortization of capitalized financing fees.
  
(b) One-third of rental expenses is assumed to be representative of the interest factor.
  
(c) Earnings were insufficient to cover fixed charges by $40,615.