Source:  Chris Scott, MEATINGPLACE.COM, 12/14/10

Sanderson Farms is citing improved market prices for poultry for more than doubling higher net income and sales in the fourth quarter ended Oct. 31 versus one year ago. Today’s news included the announcement that plans for a new processing facility in Nash County, N.C., will be delayed.

The Laurel, Miss.-based processor posted net income of $47.8 million, or $2.08 per share, compared with $19.8 million, or $0.95 per share in the fourth quarter of 2009. The latest results handily beat consensus analysts’ estimates of $1.71 per share. For fiscal 2010, Sanderson Farms reported record net income of $134.8 million and sales of $1.9 billion, versus profits of $82.3 million and sales of $1.8 billion in 2009.

Company executives told industry analysts that lower demand from foodservice, anticipated increases in grain prices and probable flat growth in Russia will affect 2011 results, although they remain optimistic overall.

Meanwhile, Sanderson Farms expects officials in Nash County to go back and redo the zoning change that opened the door for the company to build new facilities in North Carolina. Citing a “technical issue” related to last month’s  rezoning, Sanderson CEO Joe Sanderson told analysts it will push back plans to make a decision on the plant by at least two months. The controversial project was originally slated to begin construction in March, but that timetable will need to be adjusted, said Sanderson.

Sanderson added that the situation in Nash County was unusual in that opposition was being raised by a neighboring county, which the company has never before encountered with these types of projects.
 

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