Meat&Poultry - March 2011 - 14

Business Notes
Sanderson Farms touts record FY2010
In the formal business conducted at the Sanderson Farms Inc. annual meeting of stockholders held Feb. 17 at its home office in Laurel, Miss., management reported on the company’s record financial performance during fiscal 2010 and stockholders re-elected five directors to threeyear terms expiring at the 2014 annual meeting. “ Fisc a l 2 010 was Sanderson highlighted by record annual sales of $1.9 billion, surpassing the previous year’s record by over 7 percent,” said Joe Sanderson Jr., chairman of the board and CEO of Sanderson Farms. “Our revenue growth reflects the solid execution of our growth strategy to steadily increase our production capacity, and our net results reflect the quality of our operations. Consumer demand for chicken products at retail grocery stores was steady throughout the year, but we continued to experience reduced demand from food service customers, reflecting the considerable slowdown in restaurant traffic across the country. ing fiscal 2009,” he added. “For fiscal 2010, we were pleased to reward our shareholders with record net income of $134.8 million, or $6.07 per share, compared with $82.3 million, or $3.94 per share, in fiscal 2009.” Re-elected to three-year terms as directors were Lampkin Butts, president and COO, Sanderson Farms Inc.; Beverly Wade Hogan, president of Tougaloo College; Phil Livingston, retired chairman and CEO, Deposit Guaranty National Bank of Louisiana; Charles Ritter Jr., retired president and director, the Attala Company and Sanderson. “Fiscal 2010 was a successful year by nearly every measure,” Sanderson said. “Our financial and operating performance reflects our successful execution of our strategy to combine steady, manageable growth with superior operations. We continued to make the necessary investments to ensure our future growth and improve shareholder value, as we completed our new Kinston, N.C. complex on schedule and on budget. We began processing chicken at the new complex in January.” As the result of charges and lower poultry market prices, Sanderson Farms, Inc. posted a loss of $33,556,000 in the first quarter ended Jan. 31, which compared with an income of $15,817,000, equal to 75c per share on the common stock, during the same quarter of the previous year. Sales for the quarter were $427,732,000, up 2 percent from $420,123,000 during the same quarter of the previous year. “The results for the first quarter of fiscal 2011 were influenced by a number of factors,” Sanderson said. “Overall, we experienced lower poultry market prices than the same period a year ago, primarily due to an oversupply of chicken during the fi rst quarter of fiscal 2011. While retail demand for chicken has remained steady, we have continued to see weak food service demand, and we expect this trend will remain until the national unemployment rate improves.” ■

“Our operations performed well in our industry in terms of operating efficiencies and profitability as we processed a record 2.6 billion lbs. of dressed poultry in fiscal 2010 compared with 2.4 billion lbs. dur-

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Meat&Poultry - March 2011

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