December 8, 2005

US poultry company Sanderson exceeds US$1 billion in Q4 sales

US Sanderson Farms has exceeded US$1 billion in sales for the second time in the company's history despite damages from Hurricane Katrina and soft Q4 poultry prices, announced the company's chairman and CEO Joe Sanderson Jr on Dec 6.

The Mississippi-based company, which produces, processes, markets and distributes fresh and frozen chicken and other food products, was helped by a decrease in feed grain costs and an expansion in Georgia, Sanderson explained.

About US$5.1 million were reported as a profit loss due to the Hurricane Katrina, but at the same time, costs for corn and soymeal, the company's primary feed ingredients, decreased 16.8 percent and 32.5 percent respectively, compared with the same period last year.

Net sales for the Q4 of fiscal 2005 ending Oct 31 were US$249.1 million, down from US$259.2 million for the same period a year ago. However, net income for the quarter was US$10.1 million compared with US$5.1 million last year.

Net sales for 2005 was US$1.01 billion, down from US$1.05 billion for 2004. Net income for the year totalled US$70.6 million, also a decrease from US$91.4 million last year.