Pilgrim’s Pride Reports Q2 Net Sales of $2.82 Billion, Operating Income of $27 Million and GAAP EPS of $(0.02)

GREELEY, Colo., July 29, 2020 (GLOBE NEWSWIRE) -- Pilgrim’s Pride Corporation (NASDAQ: PPC) reports second quarter 2020 financial results.

Second Quarter Highlights

• Net Sales of $2.82 billion.
• Net GAAP loss of $(6.0) million.
• Operating Income margins of 2.2% in U.S., -13.3% in Mexico and 3.1% in Europe operations, respectively.
• Adjusted EBITDA of $112.2 million, or a 4.0% margin.
• Faced with the global Covid-19 pandemic, we remain guided by our principles of an uncompromising commitment to the safety of our team members, our duty to provide quality food globally, and our responsibility to provide continued employment opportunities and benefits for our team.
• Strong focus in execution and dedication by our team members, supported by portfolio strategy of differentiated products, strong Key Customer relationships, and diversified global presence helped us to reduce volatility of market conditions, especially under unexpected and unprecedented Covid-19 impact.
• After significant impact as we started the quarter, performance improved, and during June 2020 the U.S. was similar, Europe slightly ahead and Mexico in-line compared to June 2019, despite significant disruptions, sub-optimal mix, and added costs.
• Volatility and challenging conditions in the U.S. remained, partially offset by improvement in relative performance versus the industry, further supported by our business model and agility in changing mix.
• In Mexico, challenging macro environment, impacting overall demand, and a weak Peso were partially offset by the stability in Branded and Prepared Foods. Supply and demand in balance at quarter end with markets re-opening.
• The legacy European business (Moy Park) delivered comparable operating results to last year despite Covid-19 impact, with better operational efficiencies and input cost mitigation. Momentum of newly acquired assets in generating positive EBITDA continuing, and on track to achieve performance comparable to leading companies with similar portfolio in next few years.
• Our liquidity position remains strong, supported by the emphasis on cash flow generation, focus on working capital management, and disciplined investments in high-return projects, preserving the opportunity to maintain strategic growth priorities while strengthening our differentiated global platforms.

Unaudited (2)		Three Months Ended													Six Months Ended
		June 28, 2020					June 30, 2019				Y/Y Change				June 28, 2020				June 30, 2019				Y/Y Change
		(In millions, except per share and percentages)
Net sales		$	2,824.0				$	2,843.1			(0.7	)%			$	5,899.0			$	5,567.8			+5.9	%
U.S. GAAP EPS		$	(0.02	)			$	0.68			(102.9	)%			$	0.25			$	1.02			(75.5	)%
Operating income		$	27.3				$	279.6			(90.2	)%			$	111.7			$	416.6			(73.2	)%
Adjusted EBITDA(1)		$	112.2				$	349.3			(67.9	)%			$	277.7			$	553.8			(49.9	)%
Adjusted EBITDA margin(1)		4.0		%			12.3		%		-8.3 pts				4.7		%		9.9		%		-5.2 pts

<sup>(1) Reconciliations for non-U.S. GAAP measures are provided in subsequent sections within this release.

(2) Comparisons include Tulip from 10/15/19 forward.</sup>

“We are once again extremely proud of our team for their continued commitment, dedication and hard work, in supporting our ability to keep our team members safe and healthy, and allowing us the capability to maintain production and supply to our customers during this unprecedented crisis. Despite the continuing volatility and very challenging markets in Q2 due to Covid-19, our diversified strategy has continued to produce respectable results in relative performance to industry competition, and deliver more resilient performance regardless of changes in specific market conditions. For the entire Q2, Europe generated operating results similar to a year ago but were more than offset by tough market dynamics in the U.S. and Mexico. After a very challenging beginning of the quarter, markets have adapted. During the month of June, results were quite encouraging and showing a noticeable improvement globally. Compared to June of last year, the U.S. was roughly the same, Europe slightly better and Mexico in-line, even when considering all the disruptions, less than optimal product mix, and added operating costs because of Covid-19,” stated Fabio Sandri, interim Chief Executive Officer of Pilgrim's.

“In the U.S., the first half of Q2 the market was significantly challenged before a gradual loosening of travel and movement restrictions due to Covid-19 drove an improvement in channel demand, especially from foodservice. Similar to Q1, large bird deboning was once again the most volatile this quarter, with quick moves between the lows and the highs, and remained challenging compared to 2019. Operationally however, we continue to improve our relative performance versus the industry across all our business units, including in large bird deboning. We also continue to adapt quickly to changes in channel demand by adjusting the mix of our production capabilities, supported by our close partnerships with Key Customers, strong focus in execution by our team members, the geographical diversity of our footprint, and our presence across all bird size categories.”

“In continuation from Q1, Mexico remained challenged as the effects of weak macro conditions, which added to uncertainties in consumer spending, have persisted. In addition, the Peso continued to be weak putting additional pressure on the results. Industry prices were also below seasonality, driven by much better than expected growing conditions, before reverting closer to normal levels by the end of the quarter. Our increased share of non-commodity products, strong execution, and growth in Prepared Foods, have also helped to partially offset the softness.”

“Our legacy European operations performed in-line with last year, driven by strong retail demand and despite the significant impact of Covid-19 on the operations, as our strong internal operating performance and improved SG&A management helped in mitigating the difficult environment. The improvement in results from the newly acquired European assets has been maintained, with positive EBITDA continuing to increase. The performance was driven by strong demand at retail partially offset by a reduction in foodservice, continuing strength in pork exports especially to China, as well as the implementations of operational improvements and synergy capture.”

Conference Call Information

A conference call to discuss Pilgrim’s quarterly results will be held tomorrow, July 30, at 7:00 a.m. MT (9 a.m. ET).  Participants are encouraged to pre-register for the conference call using the link below.  Callers who pre-register will be given a unique PIN to gain immediate access to the call and bypass the live operator.  Participants may pre-register at any time, including up to and after the call start time.

To pre-register, go to:

You may also reach the pre-registration link by logging in through the investor section of our website at  and clicking on the link under “Upcoming Events.”

For those who would like to join the call but have not pre-registered, access is available by dialing +1 (844) 883-3889 within the US, or +1 (412) 317-9245 internationally, and requesting the “Pilgrim’s Pride Conference.” Please note that to submit a question to management during the call, you must be logged in via telephone.

Replays of the conference call will be available on Pilgrim’s website approximately two hours after the call concludes and can be accessed through the “Investor” section of . The webcast will be available for replay through October 30, 2020.

About Pilgrim’s Pride

Pilgrim’s employs approximately 58,200 people and operates protein processing plants and prepared-foods facilities in 14 states, Puerto Rico, Mexico, the U.K, and continental Europe. The Company’s primary distribution is through retailers and foodservice distributors. For more information, please visit .

Forward-Looking Statements

Statements contained in this press release that state the intentions, plans, hopes, beliefs, anticipations, expectations or predictions of the future of Pilgrim’s Pride Corporation and its management are considered forward-looking statements. Without limiting the foregoing, words such as “anticipates,” “believes,” “estimates,” “expects,” “intends,” “may,” “plans,” “projects,” “should,” “targets,” “will” and the negative thereof and similar words and expressions are intended to identify forward-looking statements. It is important to note that actual results could differ materially from those projected in such forward-looking statements. Factors that could cause actual results to differ materially from those projected in such forward-looking statements include: the impact of the COVID-19 pandemic, efforts to contain the pandemic and resulting economic downturn on our operations and financial condition, including the risk that our health and safety measures at Pilgrim’s Pride production facilities will not be effective, the risk that we may be unable to prevent the infection of our employees at these facilities, and the risk that we may need to temporarily close one or more of our production facilities; the risk that we may experience decreased production and sales due to the changing demand for food products; the risk that we may face a significant increase in delayed payments from our customers; and additional risks related to COVID-19 set forth in our Form 10-Q filed with the SEC; matters affecting the poultry industry generally; the ability to execute the Company’s business plan to achieve desired cost savings and profitability; future pricing for feed ingredients and the Company’s products; outbreaks of avian influenza or other diseases, either in Pilgrim’s Pride’s flocks or elsewhere, affecting its ability to conduct its operations and/or demand for its poultry products; contamination of Pilgrim’s Pride’s products, which has previously and can in the future lead to product liability claims and product recalls; exposure to risks related to product liability, product recalls, property damage and injuries to persons, for which insurance coverage is expensive, limited and potentially inadequate; management of cash resources; restrictions imposed by, and as a result of, Pilgrim’s Pride’s leverage; changes in laws or regulations affecting Pilgrim’s Pride’s operations or the application thereof; new immigration legislation or increased enforcement efforts in connection with existing immigration legislation that cause the costs of doing business to increase, cause Pilgrim’s Pride to change the way in which it does business, or otherwise disrupt its operations; competitive factors and pricing pressures or the loss of one or more of Pilgrim’s Pride’s largest customers; currency exchange rate fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and distribution channel, including anti-dumping proceedings and countervailing duty proceedings; and the impact of uncertainties of litigation and other legal matters described in our Quarterly Report on Form 10-Q, including the In re Broiler Chicken Antitrust Litigation and ongoing federal antitrust investigation into alleged price fixing, as well as other risks described under “Risk Factors” in the Company’s Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and subsequent filings with the Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date hereof, and the Company undertakes no obligation to update any such statement after the date of this release, whether as a result of new information, future developments or otherwise, except as may be required by applicable law.

Contact:	Dunham Winoto
	Investor Relations
	(970) 506-8192

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
		June 28, 2020				December 29, 2019
		(In thousands)
Cash and cash equivalents		$	507,442			$	260,568
Restricted cash and cash equivalents		27,031				20,009
Trade accounts and other receivables, less allowance for doubtful accounts		694,845				741,281
Accounts receivable from related parties		1,109				944
Inventories		1,347,141				1,383,535
Income taxes receivable		73,886				60,204
Prepaid expenses and other current assets		151,532				131,695
Total current assets		2,802,986				2,598,236
Deferred tax assets		4,607				4,426
Other long-lived assets		29,896				36,325
Identified intangible assets, net		558,491				596,053
Goodwill		929,518				973,750
Operating lease assets, net		282,528				301,513
Property, plant and equipment, net		2,548,555				2,592,061
Total assets		$	7,156,581			$	7,102,364
Accounts payable		$	884,423			$	993,780
Accounts payable to related parties		7,404				3,819
Revenue contract liability		39,425				41,770
Accrued expenses and other current liabilities		528,256				575,319
Income taxes payable		291				7,075
Current maturities of long-term debt		25,566				26,392
Total current liabilities		1,485,365				1,648,155
Noncurrent operating lease liability, less current maturities		213,829				235,382
Long-term debt, less current maturities		2,615,951				2,276,029
Noncurrent income taxes payable		7,731				7,731
Deferred tax liabilities		310,338				301,907
Other long-term liabilities		148,968				97,100
Total liabilities		4,782,182				4,566,304
Common stock		2,612				2,611
Treasury stock		(312,771		)		(234,892		)
Additional paid-in capital		1,958,727				1,955,261
Retained earnings		939,044				877,812
Accumulated other comprehensive loss		(223,427		)		(75,129		)
Total Pilgrim’s Pride Corporation stockholders’ equity		2,364,185				2,525,663
Noncontrolling interest		10,214				10,397
Total stockholders’ equity		2,374,399				2,536,060
Total liabilities and stockholders’ equity		$	7,156,581			$	7,102,364

PILGRIM’S PRIDE CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
		Three Months Ended								Six Months Ended
		June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019
		(In thousands, except per share data)
Net sales		$	2,824,023			$	2,843,085			$	5,898,951			$	5,567,760
Cost of sales		2,704,164				2,475,221				5,601,993				4,980,957
Gross profit		119,859				367,864				296,958				586,803
Selling, general and administrative expense		92,570				88,357				185,283				170,281
Administrative restructuring activity		—				(43		)		—				(70		)
Operating income		27,289				279,550				111,675				416,592
Interest expense, net of capitalized interest		32,323				33,594				65,011				67,156
Interest income		(1,158		)		(3,444		)		(2,848		)		(6,784		)
Foreign currency transaction losses (gains)		5,525				2,260				(12,860		)		4,896
Miscellaneous, net		(45		)		1,513				(34,233		)		1,156
Income before income taxes		(9,356		)		245,627				96,605				350,168
Income tax expense		(2,956		)		75,547				35,556				95,963
Net income		(6,400		)		170,080				61,049				254,205
Less: Net income (loss) attributable to noncontrolling interests		(364		)		12				(183		)		126
Net income attributable to Pilgrim’s Pride Corporation		$	(6,036	)		$	170,068			$	61,232			$	254,079
Weighted average shares of common stock outstanding:
Basic		246,687				249,400				248,017				249,283
Effect of dilutive common stock equivalents		331				236				291				320
Diluted		247,018				249,636				248,308				249,603
Net income attributable to Pilgrim's Pride Corporation per share of   common stock outstanding:
Basic		$	(0.02	)		$	0.68			$	0.25			$	1.02
Diluted		$	(0.02	)		$	0.68			$	0.25			$	1.02

PILGRIM’S PRIDE CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
		Six Months Ended
		June 28, 2020				June 30, 2019
		(In thousands)
Cash flows from operating activities:
Net income		$	61,049			$	254,205
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		164,376				138,530
Deferred income tax expense (benefit)		25,255				(3,354		)
Share-based compensation		3,467				5,217
Loan cost amortization		2,422				2,401
Negative adjustment to previously recognized gain on bargain purchase		1,740				—
Loss (gain) on property disposals		(1,587		)		230
Accretion of discount related to Senior Notes		491				491
Amortization of premium related to Senior Notes		(334		)		(334		)
Loss (gain) on equity-method investments		304				(32		)
Foreign currency transaction gain related to borrowing arrangements		—				37
Changes in operating assets and liabilities:
Trade accounts and other receivables		29,920				(20,385		)
Inventories		16,350				(27,212		)
Prepaid expenses and other current assets		(22,072		)		(1,339		)
Accounts payable, accrued expenses and other current liabilities		(122,191		)		20,664
Income taxes		(27,350		)		34,013
Long-term pension and other postretirement obligations		(1,908		)		(1,121		)
Other operating assets and liabilities		10,794				1,353
Cash provided by operating activities		140,726				403,364
Cash flows from investing activities:
Acquisitions of property, plant and equipment		(148,175		)		(177,609		)
Proceeds from property disposals		9,894				1,740
Purchase of acquired business, net of cash acquired		(4,216		)		—
Cash used in investing activities		(142,497		)		(175,869		)
Cash flows from financing activities:
Proceeds from revolving line of credit and long-term borrowings		356,547				99,636
Purchase of common stock under share repurchase program		(77,879		)		(2,898		)
Payments on revolving line of credit, long-term borrowings and finance lease  obligations		(20,105		)		(113,079		)
Payment from equity distribution under Tax Sharing Agreement between JBS USA Food Company Holdings and Pilgrim’s Pride Corporation		—				(525		)
Payment of capitalized loan costs		—				(596		)
Cash provided by financing activities		258,563				(17,462		)
Effect of exchange rate changes on cash and cash equivalents		(2,896		)		(5		)
Increase in cash, cash equivalents and restricted cash		253,896				210,028
Cash, cash equivalents and restricted cash, beginning of period		280,577				361,578
Cash, cash equivalents and restricted cash, end of period		$	534,473			$	571,606

PILGRIM’S PRIDE CORPORATION

Selected Financial Information

(Unaudited)

“EBITDA” is defined as the sum of net income (loss) plus interest, taxes, depreciation and amortization. “Adjusted EBITDA” is calculated by adding to EBITDA certain items of expense and deducting from EBITDA certain items of income that we believe are not indicative of our ongoing operating performance consisting of: (1) income (loss) attributable to noncontrolling interests, (2) charges or income from restructuring activities, (3) reorganization items, (4) transaction costs related to acquisitions, (5) gain on bargain purchase and (6) foreign currency transaction losses (gains). EBITDA is presented because it is used by management and we believe it is frequently used by securities analysts, investors and other interested parties, in addition to and not in lieu of results prepared in conformity with accounting principles generally accepted in the U.S. (“U.S. GAAP”), to compare the performance of companies. We believe investors would be interested in our Adjusted EBITDA because this is how our management analyzes EBITDA. The Company also believes that Adjusted EBITDA, in combination with the Company’s financial results calculated in accordance with U.S. GAAP, provides investors with additional perspective regarding the impact of certain significant items on EBITDA and facilitates a more direct comparison of its performance with its competitors. EBITDA and Adjusted EBITDA are not measurements of financial performance under U.S. GAAP. They should not be considered as an alternative to cash flow from operating activities or as a measure of liquidity or an alternative to net income as indicators of our operating performance or any other measures of performance derived in accordance with U.S. GAAP.

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
	Three Months Ended								Six Months Ended
	June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019
	(In thousands)
Net income	$	(6,400	)		$	170,080			$	61,049			$	254,205
Add:
Interest expense, net	31,165				30,150				62,163				60,372
Income tax expense	(2,956		)		75,547				35,556				95,963
Depreciation and amortization	84,603				71,348				164,376				138,530
EBITDA	106,412				347,125				323,144				549,070
Add:
Foreign currency transaction losses (gains)	5,525				2,260				(12,860		)		4,896
Transaction costs related to acquisitions	(81		)		—				134				—
Restructuring activity	—				(43		)		—				(70		)
Minus:
Negative adjustment to previously recognized gain on bargain purchase	—				—				(1,740		)		—
Shareholder litigation settlement	—				—				34,643				—
Net income attributable to noncontrolling interest	(364		)		12				(183		)		126
Adjusted EBITDA	$	112,220			$	349,330			$	277,698			$	553,770

The summary unaudited consolidated income statement data for the twelve months ended June 28, 2020 (the LTM Period) have been calculated by subtracting the applicable unaudited consolidated income statement data for the six months ended June 30, 2019 from the sum of (1) the applicable audited consolidated income statement data for the year ended December 29, 2019 and (2) the applicable audited consolidated income statement data for the six months ended June 28, 2020.

PILGRIM'S PRIDE CORPORATION
Reconciliation of LTM Adjusted EBITDA
(Unaudited)		Three Months Ended																LTM Ended
		September 29, 2019				December 29, 2019				March 29, 2020				June 28, 2020				June 28, 2020
		(In thousands)
Net income		$	110,096			$	92,235			$	67,449			$	(6,400	)		$	263,380
Add:
Interest expense, net		27,330				30,650				30,998				31,165				120,143
Income tax expense		46,365				18,681				38,512				(2,956		)		100,602
Depreciation and amortization		71,851				76,849				79,773				84,603				313,076
EBITDA		255,642				218,415				216,732				106,412				797,201
Add:
Foreign currency transaction losses   (gains)		3,027				(1,006		)		(18,385		)		5,525				(10,839		)
Transaction costs related to acquisitions		63				1,239				215				(81		)		1,436
Restructuring activity		(20		)		6				—				—				(14		)
Minus:
Gain on bargain purchase		—				56,880				(1,740		)		—				55,140
Shareholder litigation settlement		—				—				34,643				—				34,643
Net income attributable to   noncontrolling interest		331				155				181				(364		)		303
Adjusted EBITDA		$	258,381			$	161,619			$	165,478			$	112,220			$	697,698

EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by net sales for the applicable period.

PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)		Three Months Ended								Six Months Ended								Three Months Ended									Six Months Ended
		June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019				June 28, 2020					June 30, 2019				June 28, 2020				June 30, 2019
		(In thousands)
Net income		$	(6,400	)		$	170,080			$	61,049			$	254,205			(0.23		)%			5.98		%		1.03		%		4.57		%
Add:
Interest expense, net		31,165				30,150				62,163				60,372				1.10		%			1.06		%		1.05		%		1.08		%
Income tax expense		(2,956		)		75,547				35,556				95,963				(0.10		)%			2.66		%		0.60		%		1.72		%
Depreciation and amortization		84,603				71,348				164,376				138,530				2.99		%			2.51		%		2.78		%		2.49		%
EBITDA		106,412				347,125				323,144				549,070				3.76		%			12.21		%		5.46		%		9.86		%
Add:
Foreign currency transaction losses (gains)		5,525				2,260				(12,860		)		4,896				0.19		%			0.08		%		(0.21		)%		0.09		%
Acquisition charges		(81		)		—				134				—				—		%			—		%		—		%		—		%
Restructuring activity		—				(43		)		—				(70		)		—		%			—		%		—		%		—		%
Minus:
Negative adjustment to previously recognized gain on bargain purchase		—				—				(1,740		)		—				—		%			—		%		(0.03		)%		—		%
Shareholder litigation settlement		—				—				34,643				—				—		%			—		%		0.59		%		—		%
Net income (loss) attributable   to noncontrolling interest		(364		)		12				(183		)		126				(0.01		)%			—		%		—		%		—		%
Adjusted EBITDA		$	112,220			$	349,330			$	277,698			$	553,770			3.96		%			12.29		%		4.69		%		9.95		%
Net sales		$	2,824,023			$	2,843,085			$	5,898,951			$	5,567,760			$	2,824,023				$	2,843,085			$	5,898,951			$	5,567,760

A reconciliation of net income (loss) attributable to Pilgrim's Pride Corporation (“Pilgrim's”) per common diluted share to adjusted net income (loss) attributable to Pilgrim's per common diluted share is as follows:

PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Net Income
(Unaudited)
	Three Months Ended								Six Months Ended
	June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019
	(In thousands, except per share data)
Net income (loss) attributable to Pilgrim's	$	(6,036	)		$	170,068			$	61,232			$	254,079
Adjustments, net of tax:
Transaction costs related to acquisitions   and restructuring activities net loss	(81		)		(43		)		134				(70		)
Foreign currency transaction loss (gain)	5,525				2,260				(12,860		)		4,896
Income before acquisition charges and restructuring   activity, and foreign currency   transaction losses (gains)	$	(592	)		$	172,285			$	48,506			$	258,905
Weighted average diluted shares of common stock outstanding	247,018				249,636				248,308				249,603
Income before acquisition charges and restructuring activity,   and foreign currency transaction losses (gains) per   common diluted share	$	—			$	0.69			$	0.20			$	1.04

A reconciliation of U.S. GAAP to non-U.S. GAAP financial measures. Net income (loss) per share is calculated by dividing the net income (loss) attributable to Pilgrim's Pride Corporation stockholders by the weighted average number of diluted shares.

PILGRIM'S PRIDE CORPORATION
Reconciliation of GAAP EPS to Adjusted EPS
(Unaudited)
	Three Months Ended								Six Months Ended
	June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019
	(In thousands, except per share data)
GAAP EPS	$	(0.02	)		$	0.68			$	0.25			$	1.02
Adjustments, net of tax:
Acquisition charges and restructuring activity	—				—				—				—
Foreign currency transaction losses (gains)	0.02				0.01				(0.05		)		0.02
Adjusted EPS	$	—			$	0.69			$	0.20			$	1.04
Weighted average diluted shares of common stock outstanding	247,018				249,636				248,308				249,603

PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)		Three Months Ended								Six Months Ended
		June 28, 2020				June 30, 2019				June 28, 2020				June 30, 2019
		(In thousands)
Sources of net sales by geographic region of origin:
US		$	1,798,689			$	1,916,954			$	3,725,569			$	3,800,544
Europe		757,201				535,902				1,579,463				1,050,865
Mexico		268,133				390,229				593,919				716,351
Total net sales		$	2,824,023			$	2,843,085			$	5,898,951			$	5,567,760
Sources of cost of sales by geographic region of origin:
US		$	1,710,668			$	1,670,384			$	3,499,445			$	3,383,803
Europe		700,553				492,386				1,470,687				977,764
Mexico		293,143				312,475				632,085				619,438
Elimination		(200		)		(24		)		(224		)		(48		)
Total cost of sales		$	2,704,164			$	2,475,221			$	5,601,993			$	4,980,957
Sources of gross profit by geographic region of origin:
US		$	88,021			$	246,570			$	226,124			$	416,741
Europe		56,648				43,516				108,776				73,101
Mexico		(25,010		)		77,754				(38,166		)		96,913
Elimination		200				24				224				48
Total gross profit		$	119,859			$	367,864			$	296,958			$	586,803
Sources of operating income by geographic region of origin:
US		$	39,448			$	186,959			$	124,500			$	301,800
Europe		23,185				24,195				46,375				36,908
Mexico		(35,544		)		68,372				(59,424		)		77,836
Elimination		200				24				224				48
Total operating income		$	27,289			$	279,550			$	111,675			$	416,592