With lower feed costs and a consumer demand for poultry, Sanderson Farms posted a huge gain for the second quarter. The Wall Street Journal has the story:
You can listen to the webcast of their earnings announcement here at the Sanderson website. We willChicken processor Sanderson Farms Inc.'s fiscal second-quarter earnings more than quadrupled, handily beating Wall Street estimates, as feed costs eased back from last year's record.
Meat processors struggled last year as feed costs remained above historical norms. A demand slump from some markets also pressured results, hurting margins and prompting cuts to production and work forces.
Sanderson Chief Executive Joe F. Sanderson Jr. on Thursday said retail demand remained strong and exports improved from the prior quarter, though demand from food-service customers continues to be hurt as restaurants struggle. He added the company is cautiously optimistic heading into summer, when demand typically is better for chicken.
For the quarter ended April 30, Sanderson posted a profit of $26.2 million, or $1.27 a share, up from $6.2 million, or 30 cents a share, a year earlier. Revenue fell 1.6% to $426.8 million.
In other chicken news:
Philly.com has a brief about the sale of the Pilgrim's Pride chicken complex in Louisiana. The sale, totaling over $70 million, was all profit for the company, who is going through a period of restructuring following a December bankruptcy. Pilgrims Pride had paid off its $450 million debt in mid May.
Tyson will be providing 1.7 million pounds of chicken to Illinois food banks as part of a class action settlement. BND.com has more:
The suit, filed in 2001 on behalf of Illinoisans who bought Tyson chicken, claimed the company used a chilling process that added water and therefore weight to chicken.The company denies wrongdoing and said it settled the suit to avoid further legal costs.
