Sanderson Farms’ net income down in second quarter
Company hit by decrease in sales prices
Sanderson Farms reported a net income of $47.6 million for the second quarter of fiscal year 2016, a sizeable drop from the $71.2 million achieved during the same quarter of fiscal year 2016.
The drop reflects both a decline in net sales that were brought on by a decrease in sales price per pound when compared to the previous year. Sanderson Farms’ net sales for the most recent quarter were
Sanderson Farms’ second quarter ended on April 30, with the company releasing the quarterly results on May 26.
"The results for our second quarter of fiscal 2016 reflect lower grain costs, continued favorable demand for poultry products from retail grocery store customers, higher volume, and an improving export environment," Sanderson said. "While our sales price per pound decreased significantly during the first half of this fiscal year compared with last year, market prices improved steadily through the second fiscal quarter as poultry export market fundamentals improved.
"Our net sales for the quarter reflect lower sales prices, offset by significantly more pounds sold. … Poultry pounds sold increased 8.6 percent during the quarter compared with last year's second quarter.”
Sanderson Farms expansion projects progressing
Sanderson also reported progress on its new facility in Palestine, Texas, and its complex under construction in St. Pauls, North Carolina.