SANDERSON FARM : Sanderson Farms, Inc. Reports Results for Third Quarter of Fiscal 2010

Sanderson Farms, Inc. (NASDAQ: SAFM) today reported results for the third fiscal quarter and nine months ended July 31, 2010.

Net sales for the third quarter of fiscal 2010 were $489.1 million compared with $504.8 million for the same period a year ago. For the quarter, the Company reported net income of $36.1 million, or $1.55 per share, compared with $43.0 million, or $2.06 per share, for the third quarter of fiscal 2009.

Net sales for the first nine months of fiscal 2010 were $1,396.3 million compared with $1,320.5 million for the first nine months of fiscal 2009. Net income for the first nine months of fiscal 2010 totaled $87.0 million, or $3.96 per share, compared with $62.5 million, or $3.00 per share, for the first nine months of last year.

?Sanderson Farms' financial results for the third quarter of fiscal 2010 reflect favorable market conditions and solid execution in our operations, offset by the effect of the extreme heat on our live operations,? said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. ?Market prices for poultry products were lower than last year's third quarter. Retail grocery store demand has remained strong, although food service demand has remained sluggish, and will likely remain that way until the employment market gains traction and more consumers return to restaurants. Overall, our operations continue to run well, resulting in solid operating margins for the third quarter. We were also able to benefit from slightly lower costs for corn and soybean meal, our primary feed ingredients, compared with the same period a year ago. Despite lower grain costs, live production costs were negatively affected by the extreme heat across our production areas. Heat negatively impacts live weights and feed conversions, which in turn results in fewer pounds processed and sold.?

According to Sanderson, overall market prices for poultry products were slightly lower in the third quarter of fiscal 2010 compared with prices in the third quarter of fiscal 2009. As measured by a simple average of the Georgia dock price for whole chickens, prices were relatively flat, showing a one percent decline compared with the third quarter of fiscal 2009. Driven by seasonal demand, boneless breast meat prices improved during the quarter, and averaged almost nine percent higher than the prior-year period, and averaged 7.9 percent higher for the first nine months of the year compared with the prior year. Jumbo wing prices weakened seasonally and averaged $1.07 per pound for the third quarter of fiscal 2010, down 19 percent from the average of $1.32 per pound for the third quarter of fiscal 2009. The average quoted market price for bulk leg quarters decreased approximately 22 percent for the quarter, reflecting weaker export sales. Cash prices for corn and soybean meal delivered to the Company decreased 9.3 percent and 10.2 percent, respectively, compared with the third quarter a year ago. For the nine months ended July 31, 2010, corn decreased 8.4 percent and soybean meal increased 1.3 percent when compared to the nine months ended July 31, 2009.

?Solid execution through our first three fiscal quarters by our managers has put the Company in a position where it is probable that the Company's fiscal 2010 earnings will trigger bonuses under the Company's bonus award program and a contribution to the Company's Employee Stock Ownership Plan,? added Sanderson. ?Accordingly, our third quarter results reflect total accruals for both the bonus award program and the ESOP of approximately $16.1 million. Approximately $8.7 million of this total is reflected in our cost of goods sold for the quarter, with $7.4 million in administrative costs. By comparison, our results for the third fiscal quarter of 2009 included total accruals for bonuses and the ESOP of $14.6 million, with $6.3 million allocated to cost of goods sold and $8.3 million to administrative costs.

?The development of our new Kinston, North Carolina, complex is moving forward on schedule,? added Sanderson. ?We have moved into the hatchery, the feed mill will be completed soon, and we expect to begin processing birds in January 2011. We look forward to the new opportunities this plant will provide for Sanderson Farms, our employees, customers and shareholders.?

Sanderson Farms will hold a conference call to discuss this press release today, August 23, 2010, at 10:00 a.m. Central, 11:00 a.m. Eastern. Investors will have the opportunity to listen to a live Internet broadcast of the conference call through the Company's Web site at www.sandersonfarms.com or through www.earnings.com. To listen to the live call, please go to the Web site at least 15 minutes early to register, download, and install any necessary audio software. For those who cannot listen to the live broadcast, an Internet replay will be available shortly after the call and continue through August 31, 2010. Those without internet access or who prefer to listen via telephone may call 800-817-8869, access code 1490852.

Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the NASDAQ Global Select Market under the symbol SAFM.

This press release includes forward-looking statements within the meaning of the ?safe harbor? provisions of the Private Securities Litigation Reform Act of 1995, as amended. Forward-looking statements are based on a number of assumptions about future events and are subject to various risks, uncertainties and other factors that may cause actual results to differ materially from the views, beliefs, projections and estimates expressed in such statements. These risks, uncertainties and other factors include, but are not limited to those discussed under ?Risk Factors? in the Company's Quarterly Reports on Form 10-Q for the quarters ended April 30, 2010 and July 31, 2010, and the following:

(1) Changes in the market price for the Company's finished products and feed grains, both of which may fluctuate substantially and exhibit cyclical characteristics typically associated with commodity markets.

(2) Changes in economic and business conditions, monetary and fiscal policies or the amount of growth, stagnation or recession in the global or U.S. economies, either of which may affect the value of inventories, the collectability of accounts receivable or the financial integrity of customers, and the ability of the end user or consumer to afford protein.

(3) Changes in the political or economic climate, trade policies, laws and regulations or the domestic poultry industry of countries to which the Company or other companies in the poultry industry ship product, and other changes that might limit the Company's or the industry's access to foreign markets.

(4) Changes in laws, regulations, and other activities in government agencies and similar organizations applicable to the Company and the poultry industry and changes in laws, regulations and other activities in government agencies and similar organizations related to food safety.

(5) Various inventory risks due to changes in market conditions.

(6) Changes in and effects of competition, which is significant in all markets in which the Company competes, and the effectiveness of marketing and advertising programs. The Company competes with regional and national firms, some of which have greater financial and marketing resources than the Company.

(7) Changes in accounting policies and practices adopted voluntarily by the Company or required to be adopted by accounting principles generally accepted in the United States.

(8) Disease outbreaks affecting the production performance and/or marketability of the Company's poultry products, or the contamination of its products.

(9) Changes in the availability and cost of labor and growers.

(10) The loss of any of the Company's major customers.

(11) Inclement weather that could hurt Company flocks or otherwise adversely affect its operations, or changes in global weather patterns that could impact the supply of feed grains.

(12) Failure to respond to changing consumer preferences.

(13) Failure to successfully and efficiently start up and run a new plant or integrate any business the Company might acquire.

Readers are cautioned not to place undue reliance on forward-looking statements made by or on behalf of Sanderson Farms. Each such statement speaks only as of the day it was made. The Company undertakes no obligation to update or to revise any forward-looking statements. The factors described above cannot be controlled by the Company. When used in this press release, the words ?believes?, ?estimates?, ?plans?, ?expects?, ?should?, ?outlook?, and ?anticipates? and similar expressions as they relate to the Company or its management are intended to identify forward-looking statements. Examples of forward-looking statements include statements of the Company's belief about future earnings.

SANDERSON FARMS, INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (In thousands)
			July 31,					October 31,
				2010					2009
			(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents			$	102,698				$	8,194
Accounts receivable, net				74,200					68,461
Inventories				153,970					140,521
Refundable income taxes			0						1,567
Deferred tax asset				2,230					2,866
Prepaid expenses and other current assets				22,585					18,428
Total current assets				355,683					240,037
Property, plant and equipment				838,194					740,587
Less accumulated depreciation				(378,615)					(347,459)
				459,579					393,128
Other assets				3,129					3,011
Total assets			$	818,391				$	636,176
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable and accrued expenses			$	102,047				$	76,352
Current maturities of long-term debt				991					1,022
Total current liabilities				103,038					77,374
Long-term debt, less current maturities				62,646					103,123
Claims payable				Share © Business Wire - 2010 Latest news about Sanderson Farms, Inc. Sanderson Farms, Inc.'s Equity Buyback announced on February 25, 2014, has expired. 23-10-21 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P Composite 1500 22-07-27 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P 400 22-07-27 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P TMI Index 22-07-27 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P Global BMI Index 22-07-27 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P 400 Consumer Staples 22-07-27 CI Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from S&P 1000 22-07-27 CI Sanderson Farms, Others Face DOJ Antitrust Lawsuit Over Poultry Price Fixing 22-07-25 MT U.S. settles claims against poultry producers over worker treatment 22-07-25 RE MP Materials to Replace Sanderson Farms in S&P MidCap 400 22-07-25 MT Materials Down Amid Doubts on Cyclical-Sector Rebound -- Materials Roundup 22-07-22 DJ Sanderson Farms, Inc. Announces Board Changes 22-07-22 CI Cargill, Continental close U.S. chicken deal 22-07-22 RE Cargill, Continental Grain JV Completes Acquisition of Sanderson Farms 22-07-22 MT Sanderson Farms Shares Halted; Deal With Regulators Said Near 22-07-22 DJ Sanderson Farms, Inc.(NasdaqGS:SAFM) dropped from NASDAQ Composite Index 22-07-22 CI Wayne Farms LLC and Cargill, Incorporated completed the acquisition of Sanderson Farms, Inc. from BlackRock, Inc., The Vanguard Group, Inc., Nuance Investments, LLC, T. Rowe Price Associations, Inc. and others. 22-07-21 CI Momentum Picks: 5 stocks for the summer 22-07-04 Consumer Edge Downgrades Sanderson Farms to Equalweight From Overweight 22-06-16 MT Sanderson Farms Reports Higher Fiscal Q2 Results 22-05-27 MT Sanderson Farms, Inc. Reports Earnings Results for the Second Quarter and Six Months Ended April 30, 2022 22-05-27 CI Soybeans Down as Weather Outlook Spurs More Selling - Daily Grain Highlights 22-05-25 DJ Wheat Lower as Funds Step Up Selling - Daily Grain Highlights 22-05-24 DJ Wheat Higher After Russia Nixes Lifting Blockade - Daily Grain Highlights 22-05-23 DJ Sanderson Farms Maintains Quarterly Cash Dividend at $0.44 a Share, Payable May 17 to Shareholders as of May 3 22-04-21 MT Chart Sanderson Farms, Inc. DurationAuto.2 months3 months6 months9 months1 year2 years5 years10 yearsMax. PeriodDayWeek More charts Company Profile Sanderson Farms, LLC is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. The Company's products are categorized into Cuts, Specialty, and Packs. The Cuts category includes breasts, drumsticks, gizzards, legs, livers, other, tenders, thighs, whole, whole cut-up, and wings. The Specialty category includes 97% fat free, 99% fat free, hand-trimmed, and thinly sliced. Its Pack category includes family pack, mix-pack, and value pack. Its recipes categories, such as occasion, dish type, cuisine, chicken cut, and technique provide various dishes, including buffalo chicken wings, chicken kabobs, baked chicken cacciatore, barbeque chicken, chicken fajitas, chicken pot pie, chicken salad, citrus chicken, chicken stir fry, farmhouse chicken, and lemon chicken, among others. Its plants in Mississippi, Louisiana, Texas, North Carolina, and Georgia have the capacity to process more than 13.65 million chickens per week. Sector Food Processing More about the company Sector Animal Slaughtering & Processing 1st Jan change Capi. TYSON FOODS, INC. +13.31% 21.7B HORMEL FOODS CORPORATION +10.00% 19.32B HENAN SHUANGHUI INVESTMENT & DEVELOPMENT CO.,LTD. +2.58% 13.1B WH GROUP LIMITED +15.67% 10.48B JBS S.A. -8.71% 9.48B PILGRIM'S PRIDE CORPORATION +29.28% 8.5B BRF S.A. +26.94% 5.61B LDC +6.07% 2.79B MAPLE LEAF FOODS INC. -5.21% 2.13B Animal Slaughtering & Processing Stock Market Equities SAFM Stock News Sanderson Farms, Inc. SANDERSON FARM : Sanderson Farms, Inc. Reports Results for Third Quarter of Fiscal 2010 +229% on MICROSOFT CORPORATION since our purchase on January 11, 2019 Replicate our performance