US poultry processor Sanderson Farms today (20 December) announced full-year losses in the wake of higher costs and a “weak” poultry market.
The company made a net loss of US$127m for the year ending October 31, down from a net profit of US$134.8m in the same period in 2010. Sanderson also slid to a $188.3m operating loss, compared to $209m of operating profit last year. Net sales rose 2.8% to US$1.97bn.
Go deeper with GlobalData
Chairman and CEO Joe Sanderson said overall market prices for poultry products were lower in the fourth quarter of fiscal 2011 compared with prices a year ago, exacerbated by poor demand from the foodservice sector. Profits were also hit by high prices for corn and soybean meal, the company’s primary feed ingredients, up 73% and 23.5% year-on-year respectively.
He said: “Our results reflect the combination of weaker poultry markets throughout the year and the significantly higher feed grain costs we experienced during the entire year.
However, he added: “We are pleased that our balance sheet put us in the position to withstand the challenges of this past fiscal year.”
Results for the fourth quarter showed net sales were $559.8m, up from $529.1m for the same-year period.
Sanderson made a fourth-quarter loss of $21.6m, compared with net income of $47.8m in 2010, The company made an operating loss of $29.5m.
