Laurel, Miss-based Sanderson Farms, a producer and distributor of fresh and frozen chicken has posted net sales of US$202.7m for its Q3 ended 31 July, up 10.3% year on year.
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Q3 net income was US$9.3m, US$0.7 per diluted share, slightly down on US$9.6m, US$0.7 per diluted share, for the Q3 2001.
For the first nine months of FY 2002, net sales were US$542.6m, up 8.7% on US$499.4m in the same period last year. The company reported net income of US$22.3m, US$1.66 per diluted share, compared with US$15m, US$1.1 per diluted share, for the same period of FY 2001.
“We are pleased with our sales and operating execution during the Q3,” said Joe F. Sanderson, Jr., president and CEO. “In spite of the uncertainties in the market and inconsistent prices for poultry products, we continued to see positive trends in our financial and operating performance for the first nine months of FY 2002 compared with the year-earlier period. We believe these results reflect our ability to fully leverage our assets, and achieve higher levels of sales from our improved product mix.”
According to Sanderson, trends in market prices for poultry products during the quarter continued to be mixed.
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By GlobalData“The Russian embargo on US poultry products continued to have a significant impact on our export business during the Q3 2002,” said Sanderson. “While it is difficult to quantify exactly what the embargo cost for this quarter, the interruption in access to an important market for poultry shipments has adversely affected the entire industry, creating continued pricing pressures. While shipments to Russia have resumed on a limited basis, it will be difficult to determine when volumes will return to historical levels until a new protocol governing future shipments is defined.”
Sanderson added that, based on fiscal year-to-date trends and internal projections, it is comfortable with an annual earnings estimate of US$2-US$2.20 per share for FY 2002.
Statement of operations
(Unaudited) (In US$000s, except per share amounts)
Three Months Ended Nine Months Ended
July 31, July 31,
———————- ———————-
2002 2001 2002 2001
——— ——— ——— ———
Net sales $ 202,694 $ 183,692 $ 542,634 $ 499,356
Cost and expenses:
Cost of sales 179,550 160,409 483,213 452,321
Selling, general
and
administrative 7,234 6,595 20,632 17,940
——— ——— ——— ———
186,784 167,004 503,845 470,261
Operating income 15,910 16,688 38,789 29,095
Other income (expense):
Interest income 30 101 81 291
Interest expense (950) (1,625) (2,904) (5,532)
Other (15) 80 (18) 6
——— ——— ——— ———
Income before
income taxes 14,975 15,244 35,948 23,860
Income tax expense 5,690 5,685 13,660 8,899
——— ——— ——— ———
Net income $ 9,285 $ 9,559 $ 22,288 $ 14,961
========= ========= ========= =========
Basic earnings
per share $ 0.71 $ 0.70 $ 1.69 $ 1.10
========= ========= ========= =========
Diluted earnings
per share $ 0.70 $ 0.70 $ 1.66 $ 1.10
========= ========= ========= =========
Dividends per share $ 0.10 $ 0.05 $ 0.30 $ 0.15
========= ========= ========= =========
Weighted average shares outstanding:
Basic 13,125 13,579 13,217 13,605
Diluted 13,343 13,653 13,417 13,640
