Restrictions on exports and lower poultry prices due to the US bird flu outbreak have hit Sanderson Farms' profits and sales in the US group's third quarter.
For the quarter ended 31 July, net income fell to US$50.9m from $76.1m a year earlier. Operating income declined to $79.8m from $115.7m. Sales dropped to $739.9m from $768.4m.
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"Market prices for most products produced at our big bird deboning plants were significantly lower during the quarter when compared to last year's third fiscal quarter," explained CEO and chairman Joe Sanderson. "Bulk leg quarter prices remain under pressure as a result of weak export demand affected by export bans related to the discovery of avian influenza in the United States, a relatively strong United States dollar and lower oil revenue in countries with oil- based economies."
For the first nine months of the year, Sanderson Farms saw profits and sales rise.
Net income grew to $188.6m from $155.9m. Operating income increased to $292.4m from $239.4m.
Sales rose to $2.1bn from $2bn a year earlier.
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By GlobalData
