US poultry processor Sanderson Farms today (20 December) announced full-year losses in the wake of higher costs and a “weak” poultry market.
The company made a net loss of US$127m for the year ending October 31, down from a net profit of US$134.8m in the same period in 2010. Sanderson also slid to a $188.3m operating loss, compared to $209m of operating profit last year. Net sales rose 2.8% to US$1.97bn.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
Chairman and CEO Joe Sanderson said overall market prices for poultry products were lower in the fourth quarter of fiscal 2011 compared with prices a year ago, exacerbated by poor demand from the foodservice sector. Profits were also hit by high prices for corn and soybean meal, the company’s primary feed ingredients, up 73% and 23.5% year-on-year respectively.
He said: “Our results reflect the combination of weaker poultry markets throughout the year and the significantly higher feed grain costs we experienced during the entire year.
However, he added: “We are pleased that our balance sheet put us in the position to withstand the challenges of this past fiscal year.”
Results for the fourth quarter showed net sales were $559.8m, up from $529.1m for the same-year period.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataSanderson made a fourth-quarter loss of $21.6m, compared with net income of $47.8m in 2010, The company made an operating loss of $29.5m.
