Meat + Poultry - September 2006 - 13
Sanderson Farms net income slides in third quarter
Improved market conditions have led Sanderson Farms, Inc. to report net income of $3.3
million, equal to $0.16
per share on the common stock, for
the third quarter ended July 31. The
results compared with net income of
$24 million, or $1.20 per share, for the
same period this past year.
For the fi rst nine months of fi scal
2006, the company posted a loss
of $22.0 million, which compared
with net income of $60.6 million,
or $3.03 per share, for the same period during fi scal 2005.
"Our performance during the
third quarter of fi scal 2006 reflects
improved market conditions during
June and July compared to the fi rst
seven months of the year," said Joe
Sanderson Jr., chairman and C.E.O.
"While market prices for all poultry products were lower during the
quarter than the prices we experienced during the third quarter of
last year, they have improved compared with the fi rst two quarters of
fi scal 2006."
According to the company, boneless breast meat
prices during the third
quarter were, on average,
7.7 percent lower than the
prior year period, and 19.9 percent
lower for the first nine months of the
year compared to the previous year.
In May, the company reduced production levels at all of its big bird
deboning plants and its McComb,
Miss., chill pack plant. Total weekly production was reduced by approximately 4 percent. The company
also reduced the number of chickens
processed at its Collins, Miss., and
Moultrie, Ga., facilities.
"We delayed the increase in full
production in (Moultrie) Georgia in
response to market conditions that
existed this spring," Sanderson said.
"All of the production related assets
are in place to reach full production
in Georgia and we expect to be processing 1.2 million head per week by
October. We expect other cuts in production announced in May to remain
in place at least through the end of the
calendar year."
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chicken and turkey products from Alison's Family Farms, said Bruce Cuddy, president of Elite Foods.
Elite Foods, which serves specialty grocers as well as Albertsons, is among
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products. Elite also joins the increasing number of poultry firms adopting airchilled technology as part of their processing, using cold air to chill products
instead of soaking birds in chlorinated water.
Cuddy said because his product has no retained processed water it is a
more natural and wholesome product. He claims the new plant is the only
air-chilled chicken and turkey facility in the country.
The new plant employs 60 workers, but Cuddy expects that number will
double in the next few months, as volume moves toward a weekly capacity
of 60,000 chickens and 5,000 turkeys.
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www.MEATPOULTRY.com
I
September 2006
I
MEAT&POULTRY
I
13
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Meat + Poultry - September 2006
Table of Contents for the Digital Edition of Meat + Poultry - September 2006
Contents
Meat + Poultry - September 2006 - 1
Meat + Poultry - September 2006 - 2
Meat + Poultry - September 2006 - 3
Meat + Poultry - September 2006 - Contents
Meat + Poultry - September 2006 - 5
Meat + Poultry - September 2006 - 6
Meat + Poultry - September 2006 - 7
Meat + Poultry - September 2006 - 8
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