Sanderson Farms Inc. reported results for the first quarter of fiscal 2016 ended January 31, 2016. Net sales for the first quarter of fiscal 2016 were $605.2 million compared with $667.4 million for the same period a year ago. The company reported net income of $10.7 million, or $0.47 per share, for the quarter compared with net income of $66.5 million, or $2.87 per share, for the first quarter of fiscal 2015.
"Our results for the first quarter reflect significantly weaker market prices for products sold from our big bird deboning plants compared with last year’s first quarter,” said Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, Inc. “Poultry market prices for our tray pack products sold to retail grocery store customers were only slightly lower when compared with the same period a year ago, and we also experienced lower grain costs. As a result, margins on tray pack products remained strong. On the other hand, the food service market is over supplied, primarily as a result of continued weak export demand. Poultry products that would normally be directed for sale in the export markets are instead being sold in the domestic food service market. While conditions improved in January, headwinds remain in the export market even though most avian-influenza related bans on United States poultry products have been lifted. Currency issues, political issues and weak oil prices remain."