Meat makers shares keep falling after House vote

Shares of Pilgrim's Pride Corp. fell 74 cents, or 21 percent, to $2.81, while Tyson Foods Inc. shares fell $1.30, or 10 percent, to $11.39. Shares of Smithfield Foods Inc. fell $2.65, or 15 percent, to $14.46. The Dow Jones industrials fell as much as 705 points after the packaged failed.

The sector has been falling in recent days as the credit crisis on Wall Street deepened. Meat makers are particularly hard hit right now because the low-margin business is plagued by high input costs, sagging demand and an oversupply that is keeping meat prices low.

Pilgrim's Pride, which is the nation's largest chicken producer, sought to assuage investor fears earlier Monday when it said it had reached an agreement with its lenders to temporarily waive the fixed-charge covenant under its credit facilities.

Last week the company said it expects a "significant" loss in the fiscal fourth quarter and was so sagged by debt that it may not be able to meet the terms of its loan agreements. But its announcement Monday means its lenders agreed to continue to provide liquidity under the credit facilities during the thirty-day period ending Oct. 28.

Pilgrim's Pride shares set a new 52-week low of $2.75. Its shares have traded as high as 35.98 in the same span.

Tyson, which makes chicken, beef and pork, also set a new 52-week low of $10.97. The Springdale, Ark.-based company's stock has traded as high as $19.50 in the same span.

Smithfield, Va.-based pork producer Smithfield's shares were approaching their 52-week low of $13.98 and have traded as high as $32.26 in the same span.