US meat processor Sanderson Farms has reported lower sales and net income for the third quarter to 31 July.
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Net sales for the third quarter of fiscal 2005 were US$264.6m compared with $293.9m for the same period a year ago. Net income was $24.0m, or $1.19 per share, compared with $33.9m, or $1.69 per share, for the third quarter of fiscal 2004.
“We delivered a solid performance for the third quarter of fiscal 2005,” said Joe Sanderson Jr, chairman and chief executive officer of Sanderson Farms.
“Market prices for all poultry products except for leg quarters were lower than the record high prices we experienced in the third quarter of last year. However, we enjoyed lower feed costs and have continued to maintain a favourable product mix between the retail market and the big bird deboning market,” he added.
The company said it was optimistic about prospects for the remainder of fiscal 2005.
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By GlobalData“While severe hot and dry weather conditions in certain parts of the country have created uncertainty regarding the size of this year’s crop of corn and soybean in the United States, we have continued to enjoy lower costs this fiscal year when compared with last year. As projected, we expect to reduce our grain costs by approximately $60m to $65m for fiscal 2005 compared with 2004. While these commodity prices are somewhat unsettled at this time, we will continue to monitor pricing trends with respect to evaluating our cost structure for fiscal 2006.
“Overall, poultry market conditions remain favourable with good consumer demand and expected continued growth in volumes for exports. We are pleased with the momentum in our business and look forward to completing another successful year,” Sanderson concluded.
