Sanderson Farms Moves To Fiscal 3rd-quarter Profit

LAUREL, Miss. (AP) — Chicken producer Sanderson Farms Inc. said Tuesday it swung to a profit in the third quarter as feed costs fell and retail chicken sales remained stable.

The Laurel, Miss.-based company earned $43 million, or $2.09 per share, in the three months ended July 31. That compares with a loss of $3.6 million, or 18 cents per share, in the same period a year earlier.

Analysts predicted profit of $1.81 per share, according to a Thomson Reuters poll.

Revenue rose 8 percent to $504.8 million from $466.9 million. Analysts expected revenue of $476 million.

Cost of sales sank to $435.3 million from $470.4 million.

Sanderson said lower corn and soybean costs helped it keep down feed costs, and it expects the lower prices to help it during the fiscal fourth quarter as well. CEO Joe Sanderson said that although retail demand for chicken was stable, sales to casual dining and foodservice outlets remained weak.