Sanderson Farms, Inc. Reports Results For Third Quarter Of Fiscal 2013

Sanderson Farms, Inc. (NASDAQ: SAFM) today reported results for the third fiscal quarter and nine months ended July 31, 2013.

Net sales for the third quarter of fiscal 2013 were $739.0 million compared with $624.9 million for the same period a year ago. For the quarter, the Company reported net income of $67.9 million, or $2.95 per share, compared with net income of $28.7 million, or $1.25 per share, for the third quarter of fiscal 2012.

Net sales for the first nine months of fiscal 2013 were $1,955.9 million compared with $1,737.7 million for the first nine months of fiscal 2012. Net income for the first nine months of fiscal 2013 totaled $85.3 million, or $3.71 per share, compared with net income of $44.6 million, or $1.94 per share, for the first nine months of last year.

“Sanderson Farms’ financial results for the third quarter of fiscal 2013 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 2012, as the Georgia Dock whole bird price remained historically high during the quarter. The Georgia Dock price reflects steady retail grocery store demand. In addition, market prices for wings, while below last year’s third quarter levels, improved during the quarter. Boneless breast meat prices remained well above last year’s prices and peaked in May as several quick serve restaurants and other food service establishments featured chicken on their menus.”

Overall market prices for poultry products were higher in the third quarter of fiscal 2013 compared with prices in the third quarter of fiscal 2012. As measured by a simple average of the Georgia dock price for whole chickens, prices increased 11.6 percent compared with the third quarter of fiscal 2012. Boneless breast prices improved when compared to last year’s third fiscal quarter, averaging 32.3 percent higher than the prior-year period. Jumbo wing prices averaged $1.28 per pound for the third quarter of fiscal 2013, down 19.3 percent from the average of $1.59 per pound for the third quarter of fiscal 2012. The average quoted market price for bulk leg quarters was essentially flat during the quarter, averaging $0.51 per pound during the third fiscal quarter of 2013 compared to $0.50 during the third fiscal quarter of 2012. Cash prices for corn delivered to the Company increased 8.1 percent compared with the third quarter a year ago, while the price for soybean meal delivered to the Company increased 10.3 percent. For the nine months ended July 31, 2013, the Company’s cash prices for corn increased 13.2 percent and soybean meal increased 29.3 percent when compared to the nine months ended July 31, 2012.

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