Sanderson Farms sees drop in revenue, profits for Q3

Sanderson Farms reported a fall in revenue and profits in the third quarter of fiscal 2015.
Net sales for the third quarter of fiscal 2015 were $739.9 million compared with $768.4 million for the same period a year ago. For the quarter, the company reported net income of $50.9 million, or $2.27 per share, compared with net income of $76.1 million, or $3.30 per share, for the third quarter of fiscal 2014.
Net sales for the first nine months of fiscal 2015 were $2,123.9 million compared with $2,014.0 million for the first nine months of fiscal 2014. Net income for the first nine months of fiscal 2015 totaled $188.6 million, or $8.28 per share, compared with net income of $155.9 million, or $6.76 per share, for the first nine months of last year.
According to Joe F. Sanderson, Jr., chairman and CEO of Sanderson Farms, compared with the third fiscal quarter of 2014, the average Georgia dock price for whole chickens was approximately 4.5 percent higher, boneless breast meat prices were lower by approximately 25.4 percent, the average market price for bulk leg quarters decreased approximately 47.8 percent, and jumbo wing prices were higher by 29.5 percent. The company's average feed cost per pound of poultry products processed decreased 8.9 cents per pound, or 24.7 percent, compared with the third quarter of fiscal 2014, and prices paid for corn and soybean meal, the company's primary feed ingredients, decreased 13.2 percent and 34.5 percent, respectively, compared with the third quarter of fiscal 2014.