JBS suffer financial declines16 October 2008
JBS SA led declines last week on the Brazilian stock exchange, which was headed for the worst week this decade on fears the credit crisis will stunt economic expansion and a global recession would dull demand for raw materials, Bloomberg reported.
According to meatingplace.com, JBS dropped 24% due to concerns that the credit crunch will increase the cost of servicing debt from recent acquisitions. ‘This company is very much affected by this crisis due to the huge debt they have after purchases', Dennis Messer, an analyst with Brascan Corretora, was quoted as saying. ‘The industry as a whole also is falling due to this liquidity crisis.' Competing Brazilian beef producers Marfrig Frigorificos e Comercio de Alimentos SA fell 14% and Minerva SA dipped 2.1%.