May 29, 2009

Sanderson Farms has returned to profitability, netting US$26.2 million in its second quarter, up 322.6 percent from US$6.2 million in the same quarter last year. 

Net sales were US$426.8 million, down from US$433.9 million in the second quarter of 2008.

Net sales for the first half of 2009 totalled US$815.6 million compared with US$796.4 million in the same period last year. Net income for the first half of 2009 amounted to US$19.5 million, compared with US$12.4 million last year.

Much of the market improvement is due to production cuts and resulting reduced supply of chicken in the market, said Chairman and CEO Joe Sanderson.

Demand for chicken at retail grocery stores remains strong and the export market improved compared to the company's first quarter, he said.

Sanderson said demand from some foodservice customers has been adversely affected by the economic downturn in the previous two quarters, as foreign demand for protein remains weak.

But the company has benefitted from lower feed costs during the quarter compared with a year ago, Sanderson said.

Overall market prices for poultry products were higher during the second quarter of fiscal 2009 compared with the first quarter of the year. However, prices were mixed compared with prices a year ago.

The company's costs for corn and soymeal dropped 22.8 percent and 14.2 percent, respectively, compared with the second quarter a year ago.