Meat + Poultry - September 2010 - 10
Business Notes
Sanderson Farms slowed by weak poultry prices
Weaker market prices for poultry
pushed Sanderson Farms', Laurel,
Miss., earnings down during the
third quarter of fiscal 2010. Net income for the quarter ended July 31
was $36,116,000, equal
to $1.55 per share on the
common stock, down 16
percent from $43,048,000,
or $2.06 per share, during
the same period last year.
Sales for the quarter
were $489,096,000, down
3 percent from sales of
Sanderson
$504,846,000 during 2009.
"Sanderson Farms' financial results
for the third quarter of fiscal 2010 reflect favorable market conditions and
solid execution in our operations, offset
by the effect of the extreme heat on our
live operations," said Joe F. Sanderson
JIMONW
Jr., chairman and chief executive officer of Sanderson Farms Inc. "Market
prices for poultry products were lower than last year's third quarter. Retail
grocery store demand has remained
strong, although foodservice demand
has remained sluggish and will likely
remain that way until the employment
market gains traction and more consumers return to restaurants.
"Overall, our operations continue
to run well, resulting in solid operating
margins for the third quarter. We were
also able to benefit from slightly lower
costs for corn and soybean meal, our
primary feed ingredients, compared
with the same period a year ago. Despite lower grain costs, live production
costs were negatively affected by the
extreme heat across our production
areas. Heat negatively impacts live
jlju
r
weights and feed conversions, which
in turn results in fewer pounds processed and sold."
Sanderson said the development of
the company's new poultry processing
complex in Kinston, N.C., remains
on schedule.
"We have moved into the hatchery,
the feed mill will be completed soon,
and we expect to begin processing
birds in January 2011," he said.
For the fi rst nine months of fiscal 2010, net income for Sanderson
Farms was $87,020,000, or $3.96 per
share. The results compared favorably
to the same period during fiscal 2009
when earnings were $62,515,000, or
$3 per share. Sales for the period were
$1,396,320,000, up 6 percent from the
fi rst nine months of 2009 when sales
were $1,320,489,000. ■
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Meat + Poultry - September 2010
Table of Contents for the Digital Edition of Meat + Poultry - September 2010
Contents
Meat + Poultry - September 2010 - 1
Meat + Poultry - September 2010 - 2
Meat + Poultry - September 2010 - 3
Meat + Poultry - September 2010 - Contents
Meat + Poultry - September 2010 - 5
Meat + Poultry - September 2010 - 6
Meat + Poultry - September 2010 - 7
Meat + Poultry - September 2010 - 8
Meat + Poultry - September 2010 - 9
Meat + Poultry - September 2010 - 10
Meat + Poultry - September 2010 - 11
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2024
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-april-2022
https://digital.meatpoultry.com/sosland/mp/special-supplement-bacon-trends-technology-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-february-2022
https://digital.meatpoultry.com/sosland/mp/meatpoultry-january-2022
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-november-2021
https://digital.meatpoultry.com/sosland/mp/meatpoultry-october-2021
https://digital.meatpoultry.com/sosland/mp/special-supplement-ground-meat-trends-technology-october-2021
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-august-2021
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https://digital.meatpoultry.com/sosland/mp/meatpoultry-march-2021
https://digital.meatpoultry.com/sosland/mp/2021_02_01
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