UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K |
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of report (Date of earliest event reported): February 14, 2018
PILGRIM'S PRIDE CORPORATION
(Exact Name of registrant as specified in its charter)
Delaware | 1-9273 | 75-1285071 | |
(State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |
1770 Promontory Circle Greeley, CO | 80634-9038 | ||
(Address of principal executive offices) | (Zip Code) | ||
Registrant's telephone number, including area code: (970) 506-8000
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company o | |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Item 7.01. Regulation FD Disclosure
Attached hereto as Exhibit 99.1 is an overview of Pilgrim's Pride Corporation to be referenced during the Company's earnings conference call of February 15, 2018.
The information furnished in Item 7.01 and in Exhibit 99.1 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or incorporated by reference in any of Pilgrim's Pride Corporation's filings under the Securities Act of 1933, as amended, or the Exchange Act.
Item 9.01 Financial Statements and Exhibits.
Exhibit 99.1Supplemental Historical Financial Information
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PILGRIM’S PRIDE CORPORATION | |||
Date: | February 14, 2018 | /s/ Fabio Sandri | |
Fabio Sandri | |||
Chief Financial Officer | |||
Pilgrim’s Pride Corporation
(NASDAQ: PPC)
Financial Results for
Fourth Quarter and Year Ended December 31, 2017
Cautionary Notes and Forward-Looking Statements
Statements contained in this presentation that share our intentions, beliefs, expectations or predictions for the future, denoted by the words “anticipate,” “believe,”
“estimate,” “should,” “expect,” “project,” “plan,” “imply,” “intend,” “foresee” and similar expressions, are forward-looking statements that reflect our current views
about future events and are subject to risks, uncertainties and assumptions. Such risks, uncertainties and assumptions include the following matters affecting the
chicken industry generally, including fluctuations in the commodity prices of feed ingredients and chicken; actions and decisions of our creditors; our ability to
obtain and maintain commercially reasonable terms with vendors and service providers; our ability to maintain contracts that are critical to our operations; our
ability to retain management and other key individuals; certain of our reorganization and exit or disposal activities, including selling assets, idling facilities,
reducing production and reducing workforce, resulted in reduced capacities and sales volumes and may have a disproportionate impact on our income relative to
the cost savings; risk that the amounts of cash from operations together with amounts available under our exit credit facility will not be sufficient to fund our
operations; management of our cash resources, particularly in light of our substantial leverage; restrictions imposed by, and as a result of, our substantial
leverage; additional outbreaks of avian influenza or other diseases, either in our own flocks or elsewhere, affecting our ability to conduct our operations and/or
demand for our poultry products; contamination of our 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; changes in laws or regulations affecting our operations or the application thereof; new immigration legislation or increased enforcement
efforts in connection with existing immigration legislation that cause our costs of business to increase, cause us to change the way in which we do business or
otherwise disrupt our operations; competitive factors and pricing pressures or the loss of one or more of our largest customers; currency exchange rate
fluctuations, trade barriers, exchange controls, expropriation and other risks associated with foreign operations; disruptions in international markets and
distribution channels; and the impact of uncertainties of litigation as well as other risks described herein and under “Risk Factors” in the Company’s Annual
Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”).
Actual results could differ materially from those projected in these forward-looking statements as a result of these factors, among others, many of which are
beyond our control. In making these statements, we are not undertaking, and specifically decline to undertake, any obligation to address or update each or any
factor in future filings or communications regarding our business or results, and we are not undertaking to address how any of these factors may have caused
changes to information contained in previous filings or communications. Although we have attempted to list comprehensively these important cautionary risk
factors, we must caution investors and others that other factors may in the future prove to be important and affecting our business or results of operations.
This presentation may include information that may be considered non-GAAP financial information as contemplated by SEC Regulation G, Rule 100, including
EBITDA, Adjusted EBITDA, LTM EBITDA, Net Debt, Free Cash Flow, Adjusted EBITDA Margin and others. Accordingly, we have provided tables in the
accompanying appendix and in our previous filings with the SEC that reconcile these measures to their corresponding GAAP-based measures and explain why
these measures are useful to investors, which can be obtained from the Consolidated Statements of Income provided with our previous filings with the SEC. Our
method of computation may or may not be comparable to other similarly titled measures used in filings with the SEC by other companies. See the consolidated
statements of income and consolidated statements of cash flows included in our financial statements..
2
5,000
5,500
6,000
6,500
7,000
7,500
8,000
8,500
9,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
o
u
sa
n
d
H
ea
d
Intended Pullet Placements
2016 2017 5 year avg.
Pullet placements were slightly up YOY to support decreased flock productivity and
new plants for 2018/ 2019.
2017 Pullet Placements +1.1%
Source: USDA 3
Intended Pullet Placements
Layer Growth Needed to Counter Decline in Egg Productivity
Source: USDA 4
Hatching layers are up to counter less productive new breed and older flock, both of
which generate fewer eggs per bird.
54,152
56,723
0
10,000
20,000
30,000
40,000
50,000
60,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Th
o
u
sa
n
d
H
ea
d
Broiler Type Hatching Layers
2016 2017 5 year avg.
1,932
1,866
1,550
1,600
1,650
1,700
1,750
1,800
1,850
1,900
1,950
2,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Eg
gs
Egg Production per 100 Layers
2016 2017 5 year avg.
5
Hatchery Utilization Remains Close to Peak Levels
84.00%
85.00%
86.00%
87.00%
88.00%
89.00%
90.00%
91.00%
92.00%
93.00%
94.00%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
%
Hatchery Utilization
2016 2017 5 year avg.
+2.9% Increase in Egg Sets Required to Offset Lower Hatch
Source: USDA 6
0.7800
0.7900
0.8000
0.8100
0.8200
0.8300
0.8400
%
Chicken Hatchability
by Week - USDA
5 Year Range 2016 2017 2018 5 year avg
170,000
180,000
190,000
200,000
210,000
220,000
230,000
240,000
T
h
o
u
s
a
n
d
s o
f
E
g
g
s
Chicken Egg Sets
by Week - USDA
5 Year Range 2016 2017 2018 5 year avg
2017 Chick Placements Modestly Higher
Source: USDA 7
160,000
165,000
170,000
175,000
180,000
185,000
190,000
Head
(
0
0
0
)
Chicken Broiler Placed
by Week- USDA
5 Year Range 2016 2017 2018 5 Yr. Avg
After Recent Stability, Expect Slight Shift into Jumbo Bird
in 2018 on New Capacity
Source: USDA 8
23% 24% 27% 26% 26% 25% 25% 25%
43% 41% 35% 35% 32% 31% 30% 29%
19% 19%
19% 19%
21% 23% 24% 24%
15% 16% 18% 20% 21% 21% 21% 21%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2011 2012 2013 2014 2015 2016 2017 2018*
Head Processed by Size
<4.25 4.26-6.25 6.26-7.75 >7.76
Cold Storage Inventories Starting to Decline
Source: USDA
Overall inventories rose in Dec mostly driven by large increase in “Other” products;
Breast Meat and LQ ended the month down vs. Dec 2016.
9
500,000,000
550,000,000
600,000,000
650,000,000
700,000,000
750,000,000
800,000,000
850,000,000
900,000,000
950,000,000
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Total Chicken Inventories
2015 2016 2017 5 Year Average
2017 Cutout Ended Close to Seasonality,
Prices in 2018 are In-line with Last Year
Source: PPC
10
62.44
50.00
60.00
70.00
80.00
90.00
100.00
110.00
1/
6
1/
2
0
2/
3
2/
1
7
3/
3
3/
1
7
3/
31
4/
1
4
4/
2
8
5/
1
2
5/
2
6
6/
9
6/
2
3
7/
7
7/
2
1
8/
4
8/
1
8
9/
1
9/
1
5
9/
2
9
10
/1
3
10
/2
7
11
/1
0
11
/2
4
12
/8
12
/2
2
C
ents/L
b
Cutout Value
5 Year Range 2016 2017 2018 5 Year Avg
107.12
75.00
95.00
115.00
135.00
155.00
175.00
195.00
215.00
1/
5
2/
4
3/
6
4/
5
5/
5
6/
4
7/
4
8/
3
9/
2
10
/2
11
/1
12
/1
C
e
n
ts
/L
b
USDA Boneless/Skinless Breast NE
5 Year Range 2016 2017 2018 5 Year Average
35.52
15.00
20.00
25.00
30.00
35.00
40.00
45.00
50.00
55.00
60.00
1/
5
2/
4
3/
6
4/
5
5/
5
6/
4
7/
4
8/
3
9/
2
10
/2
11
/1
12
/1
C
e
n
ts
/L
b
USDA Leg Quarters NE
5 Year Range 2016 2017 2018 5 Year Average
177.1
120.00
140.00
160.00
180.00
200.00
220.00
240.00
1/
5
2/
4
3/
6
4/
5
5/
5
6/
4
7/
4
8/
3
9/
2
10
/2
11
/1
12
/1
C
e
n
ts
/L
b
USDA Whole Wings NE
5 Year Range 2016 2017 2018 5 Year Average
156.07
75.00
95.00
115.00
135.00
155.00
175.00
195.00
215.00
235.00
255.00
1/
5
2/
4
3/
6
4/
5
5/
5
6/
4
7/
4
8/
3
9/
2
10
/2
11
/1
12
/1
C
e
n
ts
/L
b
USDA Tenders NE
5 Year Range 2016 2017 2018 5 Year Average
Wings Trending Similar to Seasonal Norms in New Year;
LQ and Tenders Pacing Above Previous 2 Years
Source: USDA 11
USDA Boneless/Skinless Breast NE USDA Tenders NE
USDA Leg Quarters USDA Whole Wings NE
12
Small Bird Stronger than Last Year
and In–line with 5 year Average
Source: EMI
90.49
60
70
80
90
100
110
120
1
/5
1
/1
9
2
/2
2
/1
6
3
/2
3
/1
6
3
/3
0
4
/1
3
4
/2
7
5
/1
1
5
/2
5
6
/8
6
/2
2
7
/6
7
/2
0
8
/3
8
/1
7
8
/3
1
9
/1
4
9
/2
8
1
0
/1
2
1
0
/2
6
1
1
/9
1
1
/2
3
1
2
/7
1
2
/2
1
C
en
ts
/L
b
.
EMI WOG 2.5-4.0 LBS
5 Year Range 2016 2017 2018 5 Year Average
Corn Stocks to Remain at High Levels in ’17/18
After record stocks in 2016, 2017 stocks projected slightly lower but market remains well
supplied.
USDA tightens global stocks-to-use for 2017.
Source: USDA 13
72.2
89.9
94.1
92.8
78.5
73.4
67.9
93.7
109.4
104.2
129.1
123.5
50
60
70
80
90
100
110
120
130
140
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e 2017p
Global Corn Stocks
Excluding China
(Million Metric Tons)
12.4%
14.4%
14.9%
14.1%
11.7%
10.6%
10.2%
12.6%
14.0% 13.9%
15.6%
14.9%
10.0%
11.0%
12.0%
13.0%
14.0%
15.0%
16.0%
2006 2007 2008 2009 2010 2011 2 2013 2014 2015 2016e 2017p
Global Corn Stocks/Use
Excluding China
Global Soybean Inventories Increasing
Global inventories of soybeans remain at record high levels, with expected growth in
2017.
USDA forecasts continued growth in oilseed demand in 2018 .
Source: USDA 14
52.8
62.7
52.9
44.0
59.5
69.9
53.4 57.4
61.8
77.5 77.9
96.1 98.1
0
20
40
60
80
100
120
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016e2017p
Global Soybean Stocks
(Million Metric Tons)
27.8%
23.0%
19.9%
25.0%
27.6%
20.8%
22.0% 22.4%
25.7%
24.8%
29.1% 28.6%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
27.0%
29.0%
31.0%
33.0%
35.0%
2006 2007 20 8 2009 2010 2011 2012 2013 2014 2015 2016e 2017p
Global Soybean Stocks/Use
Fourth Quarter 2017 Financial Review
US business units solid; GNP
significantly improved with margins on-
par with legacy, MX challenged due to
weather events, UK/Europe stable.
SG&A higher due to addition of GNP
and Moy Park, brand investments in US
and MX, and increase in bonus accrual.
Adjusted Q4-17 EBITDA improvement vs
Q4-16 shows strength and diversity of
portfolio despite market conditions.
Main Indicators ($M)** Q4-17 Q4-16
Net Revenue 2,742.4 2,370.9
Gross Profit 261.8 228.9
SG&A 106.8 81.9
Operating Income 155.0 147.0
Net Interest 36.7 16.9
Net Income 134.3 70.6
Earnings Per Share
(EPS)
0.54 0.28
Adjusted EBITDA* 241.0 205.4
Adjusted EBITDA
Margin*
8.8% 8.7%
* This is a non-GAAP measurement considered by management to be
useful in understanding our results. Please see the appendix and most
recent SEC financial filings for definition of this measurement and
reconciliation to GAAP.
** Consolidated results include full-quarter of Moy Park, in accordance to
U.S. GAAP.
In $M U.S. EU MX
Net Revenue 1,886.1 522.5 333.8
GAAP Operating
Income
122.4 25.2 7.4
Adjusted Operating
Income*
135.5 26.0 13.5
15 Source: PPC
Fourth Quarter 2017 Capital Spending
Capex (US$M)
Source: PPC
Strong Free Cash Flow generation has enabled us to direct more capital spending
towards identified projects with rapid payback and structural projects.
New strategic projects will support key customers growth and de-emphasize our
exposure to commodity markets by yielding a more differentiated portfolio.
16
Capex (US$M)
Investor Relations Contact
Investor Relations: Dunham Winoto
Director, Investor Relations
E-mail: IRPPC@pilgrims.com
Address: 1770 Promontory Circle
Greeley, CO 80634 USA
Website: www.pilgrims.com
17
APPENDIX
18
Appendix: EBITDA Reconciliation
Source: PPC.
“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: (i) income (loss) attributable to non-controlling interests, (ii) restructuring charges, (iii) reorganization items, (iv) losses on
early extinguishment of debt and (v) 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 US (“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 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 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 GAAP.
19 Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted EBITDA
(Unaudited)
Fourteen Weeks
Ended Thirteen Weeks Ended
Fifty-Three Weeks
Ended
Fifty-Two Weeks
Ended
December 31, 2017 December 25, 2016 December 31, 2017 December 25, 2016
(In thousands)
Net income $ 133,925 $ 85,432 $ 718,167 $ 480,117
Add:
Interest expense, net 36,738 16,855 99,453 73,335
Income tax expense (benefit) (14,147 ) 40,940 263,899 243,919
Depreciation and amortization 73,167 57,580 277,792 231,708
Minus:
Amortization of capitalized financing costs 2,839 2,465 5,968 5,324
EBITDA 226,844 198,342 1,353,343 1,023,755
Add:
Foreign currency transaction losses (gains) (159 ) 5,824 (2,659 ) 4,055
Acquisition charges 4,567 — 19,606 —
Restructuring charges 1,279 790 9,775 1,069
Puerto Rico hurricane impact 8,066 — 8,066 —
Minus:
Net income (loss) attributable to noncontrolling
interest (412 ) (469 ) 102
(803 )
Adjusted EBITDA $ 241,009 $ 205,425 $ 1,388,029 $ 1,029,682
Appendix: EBITDA Margin Reconciliation
20
Source: PPC.
EBITDA margins have been calculated by taking the relevant unaudited EBITDA figures, then dividing by Net Revenue for the applicable period.
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of EBITDA Margin
(Unaudited)
Fourteen
Weeks
Ended
Thirteen
Weeks
Ended
Fifty-Three
Weeks
Ended
Fifty-Two
Weeks
Ended
Fourteen
Weeks
Ended
Thirteen
Weeks
Ended
Fifty-Three
Weeks
Ended
Fifty-Two
Weeks
Ended
December
31, 2017
December
25, 2016
December
31, 2017
December
25, 2016
December
31, 2017
December
25, 2016
December
31, 2017
December
25, 2016
(In thousands)
Net income $ 133,925 $ 85,432 $ 718,167 $ 480,117 4.88 % 3.60 % 6.67 % 4.86 %
Add:
Interest expense, net 36,738 16,855 99,453 73,335 1.34 % 0.71 % 0.92 % 0.74 %
Income tax expense
(benefit) (14,147 ) 40,940
263,899
243,919
(0.52 )% 1.73 % 2.45 % 2.47 %
Depreciation and
amortization 73,167
57,580
277,792
231,708
2.67 % 2.43 % 2.58 % 2.35 %
Minus:
Amortization of capitalized
financing costs 2,839
2,465
5,968
5,324
0.10 % 0.10 % 0.06 % 0.05 %
EBITDA 226,844 198,342 1,353,343 1,023,755 8.27 % 8.37 % 12.57 % 10.36 %
Add:
Foreign currency
transaction losses (gains) (159 ) 5,824
(2,659 ) 4,055
(0.01 )% 0.25 % (0.02 )% 0.04 %
Acquisition charges 4,567 — 19,606 — 0.17 % — % 0.18 % — %
Restructuring charges 1,279 790 9,775 1,069 0.05 % 0.03 % 0.09 % 0.01 %
Puerto Rico hurricane
impact 8,066
—
8,066
—
0.29 % — % 0.07 % — %
Minus:
Net income (loss)
attributable to
noncontrolling interest (412 ) (469 ) 102
(803 ) (0.02 )% (0.02 )% — % (0.01 )%
Adjusted EBITDA $ 241,009 $ 205,425 $ 1,388,029 $ 1,029,682 8.79 % 8.66 % 12.89 % 10.42 %
Net Revenue: $ 2,742,352
$ 2,370,883
$ 10,767,863
$ 9,878,564
$ 2,742,352
$ 2,370,883
$ 10,767,863
$ 9,878,564
Appendix: Adjusted Operating Income Reconciliation
21
Source: PPC.
A reconciliation of GAAP operating income to adjusted operating income is as follows:
Source: PPC
PILGRIM'S PRIDE CORPORATION
Reconciliation of Adjusted Operating Income
(Unaudited)
Fourteen Weeks
Ended
Thirteen Weeks
Ended
Fifty-Three
Weeks Ended
Fifty-Two Weeks
Ended
December 31,
2017
December 25,
2016
December 31,
2017
December 25,
2016
(In thousands)
GAAP operating income (US operations) $ 122,370 $ 92,279 $ 841,491 $ 572,559
Administrative restructuring charges 529 790 9,025 1,069
Acquisition charges 4,567 — 19,606 —
Puerto Rico hurricane impact 8,066 — 8,066 —
Adjusted operating income (US operations) $ 135,532 $ 93,069 $ 878,188 $ 573,628
Adjusted operating income margin (US operations) 7.19 % 5.82 % 11.80 % 8.60 %
GAAP operating income (Mexico operations) $ 7,390 $ 32,000 $ 153,631 $ 140,856
Foreign exchange 6,100 — (13,000 ) —
Adjusted operating income (Mexico operations) $ 13,490 $ 32,000 $ 140,631 $ 140,856
Adjusted operating income margin (Mexico
operations) 4.04 % 10.35 % 10.59 % 11.18 %
GAAP operating income (Europe operations) $ 25,231 $ 22,731 $ 77,105 $ 78,572
Administrative restructuring charges 750 — 750 —
Adjusted operating income (Europe operations) $ 25,981 $ 22,731 $ 77,855 $ 78,572
Adjusted operating income margin (Europe operations) 4.97 % 4.91 % 3.90 % 4.03 %
Appendix: Segment and Geographic Data
22
Source: PPC. Source: PPC
PILGRIM'S PRIDE CORPORATION
Supplementary Selected Segment and Geographic Data
(Unaudited)
Fourteen Weeks Ended Thirteen Weeks Ended
Fifty-Three Weeks
Ended
Fifty-Two Weeks
Ended
December 31, 2017 December 25, 2016 December 31, 2017 December 25, 2016
(In thousands)
Sources of net sales by country of origin:
US: $ 1,886,133 $ 1,599,052 $ 7,443,222 $ 6,671,403
Europe: 522,465 462,733 1,996,319 1,947,441
Mexico 333,754 309,098 1,328,322 1,259,720
Total net sales: $ 2,742,352 $ 2,370,883 $ 10,767,863 $ 9,878,564
Sources of cost of sales by country of origin:
US: $ 1,691,586 $ 1,458,670 $ 6,348,411 $ 5,929,318
Europe: 472,016 414,576 1,808,139 1,757,818
Mexico 316,972 268,791 1,139,794 1,087,540
Elimination: (26 ) (24 ) (95 ) (95 )
Total cost of sales: $ 2,480,548 $ 2,142,013 $ 9,296,249 $ 8,774,581
Sources of gross profit by country of origin:
US: $ 194,549 $ 140,382 $ 1,094,811 $ 742,085
Europe: 50,446 48,157 188,180 189,623
Mexico 16,783 40,306 188,528 172,180
Elimination: 26 25 95 95
Total gross profit: $ 261,804 $ 228,870 $ 1,471,614 $ 1,103,983
Sources of operating income by country of origin:
US: $ 122,370 $ 92,279 $ 841,491 $ 572,559
Europe: 25,231 22,731 77,105 78,572
Mexico 7,390 32,000 153,631 140,856
Elimination: 26 24 95 95
Total operating income: $ 155,017 $ 147,034 $ 1,072,322 $ 792,082