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Sanderson Farms, Inc. (NASDAQ: SAFM) today reported results for the third fiscal quarter and nine months ended July 31, 2012.
Net sales for the third quarter of fiscal 2012 were $624.9 million compared with $511.2 million for the same period a year ago. For the quarter, the Company reported net income of $28.7 million, or $1.25 per share, compared with a net loss of $55.7 million, or $2.51 per share, for the third quarter of fiscal 2011.
Net sales for the first nine months of fiscal 2012 were $1,737.7 million compared with $1,418.2 million for the first nine months of fiscal 2011. Net income for the first nine months of fiscal 2012 totaled $44.6 million, or $1.94 per share, compared with a net loss of $105.5 million, or $4.77 per share, for the first nine months of last year.
“Sanderson Farms’ financial results for the third quarter of fiscal 2012 reflect improved market conditions when compared to last year’s third quarter,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “Market prices for poultry products were higher than the third quarter of fiscal 2011, as the Georgia Dock whole bird price reached historic high prices during the quarter. These prices reflect steady retail grocery store demand and lower production. In addition, market prices for wings continued a strong counter seasonal upward trend. While retail grocery store demand has remained steady, food service demand remains sluggish, keeping the market price for boneless breast meat under pressure during the third quarter. Boneless breast meat prices have strengthened during August.”
Market prices for poultry products were higher in the third quarter of fiscal 2012 compared with prices in the third quarter of fiscal 2011. As measured by a simple average of the Georgia dock price for whole chickens, prices increased 8.6 percent compared with the third quarter of fiscal 2011. Boneless breast prices improved when compared to last year’s third fiscal quarter, averaging 14.7 percent higher than the prior-year period, but still remained relatively weak given sluggish food service demand. Jumbo wing prices averaged $1.59 per pound for the third quarter of fiscal 2012, up 104.2 percent from the average of $0.78 per pound for the third quarter of fiscal 2011. The average quoted market price for bulk leg quarters increased approximately 12.2 percent for the quarter. Cash prices for corn delivered to the Company decreased 5.7 percent compared with the third quarter a year ago, while the price for soybean meal delivered to the Company increased 8.2 percent. For the nine months ended July 31, 2012, the Company’s cash prices for corn decreased 1.2 percent and soybean meal decreased 2.5 percent when compared to the nine months ended July 31, 2011.