Laurel, Miss - Sanderson Farms, Inc. announced record sales for the fiscal year ended October 31, 1997. Net sales for the year totaled $481.8 million, up 6% from fiscal 1996 sales of $455.1 million. Net income for fiscal 1997 was $1.2 million, or $.09 per share, compared with a net loss of $2.4 million, or $.18 per share, for fiscal 1996.
For the fourth quarter ended October 31, 1997, net sales were $126.8 million compared with $124.2 million for the fourth quarter of fiscal 1996. Net income for the period totaled $436,000, or $.03 per share, compared with $1.8 million, or $.13 per share, reported for the comparable 1996 period.
Joe F. Sanderson, Jr., President and Chief Executive Officer of Sanderson Farms, commented, "Our fundamental operations showed considerable improvement in the fourth quarter, reflecting a recovery from the fire at the McComb processing facility earlier in the year and the nutritional problem which affected our performance in the third quarter. We also are beginning to realize the benefits of our concentration on the Company's cost structure. These improvements were offset, however, by lower market prices for poultry products during the fourth quarter.
"We look ahead to fiscal 1998 with caution. The current market price for poultry, as measured by the Georgia dock price, is approximately 9 cents per pound lower than a year ago, while the cost of feed grains is roughly the same. Under these market conditions, the first quarter of fiscal 1998 will be difficult for Sanderson Farms. Although we are cautious in our outlook for the current quarter, we believe our operations are on track to perform well when market conditions improve."
Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items.
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