NEW YORK AP – Despite reporting a loss Tuesday, shares of chicken processor Pilgrim’s Pride Corp. rose more than 4 percent on word an acquisition would result in more savings than expected.

Pilgrim’s Pride swung to a loss of $8.7 million and posted flat revenue for the first quarter, mainly due to higher feed costs that have hurt the entire chicken industry. The company singled out surging demand for corn-based ethanol as a major factor driving up the costs of feed.