US poultry processor Sanderson Farms suffered heavy losses in its fiscal third quarter.
In the three months ending July 31, the company reported a net loss of US$55.7m, compared to a net income of $36.1m in the same period last year.
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The net loss for the first nine months of 2011 totalled $105.5m, or $4.77 per share, compared with net income of $87m, or $3.96 per share, for the first nine months of 2010.
The drop is in spite of rising sales – net sales for the quarter were $511.2m, compared to $489.1m for the same period a year ago.
“Sanderson Farms’ financial results for the third quarter of fiscal 2011 reflect difficult market conditions,” said chairman and CEO Joe Sanderson. “Market prices for poultry products were significantly lower than last year’s third quarter. We also incurred significantly higher costs for corn and soybean meal, our primary feed ingredients, compared with the same period a year ago
He added: “While retail grocery store demand has remained steady, food service demand remains sluggish.”
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By GlobalDataHowever, Mr Sanderson added that, despite the current market conditions, the company was “confident in the long term success of the company”.
He said: “We continue to operate well and are comfortable with our growth strategy.”
