Sanderson Farms sustains loss due to higher costs
February 27, 2007
by Keith Nunes
LAUREL, MISS. — Soft market prices for chicken combined with higher-than-average input costs led to a loss for Sanderson Farms, Inc. during the first quarter of fiscal 2007, which ended Jan. 31. The loss of $2,849,000 during the first quarter of 2007 is less than the loss the company reported for the same period last year of $8,606,000.
"The results for the first quarter of fiscal 2007 showed improvement over the same period last year, although we still faced a challenging poultry market, particularly in the first half of the period," said Joe F. Sanderson Jr., chairman and chief executive officer. "Market prices were soft at the beginning of the quarter, but began to improve in December and have continued to trend higher through February. Overall, poultry prices were higher than the same period a year ago. However, we continue to see higher and more volatile prices for corn and soybean meal, our primary feed ingredients, and the significantly higher costs affected our profitability during the quarter."
Sales for the first quarter of fiscal 2007 were $292,711,000 compared with $236,203,000 for the same period last year.