22 December 1999
Breeder sees end to pig sector trough
PIC International, the pig breeder, has issued a positive statement on market prospects which some observers believe signals the end of the industry trough.
The groups shares climbed 34% to 33.5p after the company said trading for the first five months of the year to end-June 2000 was in line with expectations.
Although PIC admitted trading conditions in Europe continued to be “very difficult”, it said there an improving trend over the second half of the year.
However company officials expects to wait some time before the improving trend leads to an increase in volumes.
But the company found encouragement in the partial recovery of prices in North America and strong consumption patterns in many markets.
There were also “clear signs of a reduction in the breeding herd” – a remark which some believe suggests an imminent revival in pig prices.
In September, PIC blamed poor market conditions for a loss before exceptional items and tax of £1.5 million for the year to 30 June.
Analysts are expecting a return to profit next year which could further boost the recovery of shares which have fallen from a high of 225p.
- Pig slump hits PIC International, FWi, 16 September, 1999
- No divi from PIC International, FWi, 11 February, 1999
- PIC shares fall 25% after warning, FWi, 15 December, 1998
- Financial Times 22/12/99 page 20
- The Daily Telegraph 22/12/99 page 24 (Questor)