US: Sanderson sees sharp profit drop
US chicken producer Sanderson Farms has reported a sharp drop in quarterly profits as rising feed costs hit margins.
Sanderson said earnings fell to US$6.2m in the second quarter, down from $26.9m booked in the comparative period of last year.
The drop in profits came despite an increase in sales, which rose from $360.5m to $433.9m.
"We are pleased to report a profit during our second fiscal quarter, in spite of challenging industry fundamentals," said Joe Sanderson, Jr., chairman and chief executive officer of Sanderson Farms.
"Like others in our industry, the company's financial results were affected by feed grain costs, which were significantly higher than they were in the same period a year ago, and higher than the first quarter of this year."
The company said that it expected this trend to continue throughout the current fiscal year. In response, Sanderson said it was focusing on "developing efficiency".
Shares in US poultry group Sanderson Farms increased 6.7% yesterday (19 November) after the stock was upgraded to "neutral" from "underweight", according to reports....
Sanderson Farms has said that it is considering issuing US$1bn in new stock to fund potential acquisitions....
US chicken producer Sanderson Farms posted a third-quarter loss today (26 August) as feed costs hit profits....
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