EX-12 3 ex_12.htm RATIO OF EARNINGS TO FIXED CHARGES Ratio of Earnings to Fixed Charges

PILGRIM'S PRIDE CORPORATION

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES

   
Year Ended
  
       
October 1,
2005
  
October ,2
2004
  
September 27, 2003
  
September 28, 2002
  
September 29, 2001
  
   
                                  (amounts in thousands, except ratio)
  
EARNINGS:
                                     
Income before income taxes
        
$
403,523
  
$
208,535
  
$
63,235
  
$
1,910
  
$
61,861
  
                                       
Add: Total fixed charges (see below)
          
64,735
    
67,168
    
49,647
    
48,322
    
48,394
  
Less: Interest Capitalized
          
(2,841
)
  
(1,714
)
  
(1,535
)
  
(6,014
)
  
(7,153
)
Total Earnings
        
$
465,417
  
$
273,989
  
$
111,347
  
$
44,218
  
$
103,102
  
                                       
FIXED CHARGES:
                                     
Interest (1)
        
$
52,426
  
$
56,150
  
$
40,356
    
38,965
  
$
38,840
  
Portion of rental expense representative of the interest  factor (2)
          
12,309
    
11,018
    
9,291
    
9,357
    
9,554
  
Total fixed charges
        
$
64,735
  
$
67,168
  
$
49,647
  
$
48,322
  
$
48,394
  
Ratio of earnings to fixed charges
          
7.19
    
4.08
    
2.24
    
(3
)
  
2.13
  
                             
(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.