JBS in Financial Struggle

JBS in Financial Struggle

Company is trying to sell about a quarter of U.S. division.

JBS S.A. is in an advanced stage of negotiations with an unnamed investor interested in committing $2.5 billion to JBS's U.S. division. Also, the company reported a steep decline in earnings in its third fiscal quarter. As a result, JBS needs to sell up to 26.3% of its U.S. unit to shore up its financial ratios. Until this happens, JBS S.A.'s plan to buy Brazilian rival Bertin cannot be completed.

 

JBS reported Friday that its net earnings for the third quarter, ending September 30, dropped 78%, about $87.4 million, compared with the year-earlier period. At the same time revenue rose 8% to $4.8 billion compared to one year earlier. Most of the income was from added sales from the beef unit of Smithfield Foods.

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