Sanderson Farms Inc. saw a smaller-than-expected increase in profit and sales for its fiscal third quarter after the company missed its meat-processing forecast because of poor hatch rates and bird weights, Bloomberg reports.

Net income increased to US$3.30 a share in the three months through July from US$2.95 a year earlier. Revenue rose 4% to US$768.4 million.

The company's stock fell 5.6% to US$89.79 at the close in New York, the biggest fall in nearly a year.

The company processed 349.5 million kilograms of fresh poultry in the quarter, 20.3 million kilograms less than it predicted in May, chairman and chief executive officer Joe F. Sanderson said. The company plans to start using a new type of male chicken in December to improve yields.

Sanderson said it is still on target to begin processing poultry at its new plant in Palestine, Texas, in the first calendar quarter of next year.