990556 Sanderson Farms Reports Second Quarter Results

Laurel, MI - Sanderson Farms, Inc. reported results for the second quarter and first six months of fiscal 1999. For the three months ended April 30, 1999, the Company reported net sales of $134,586,000, up 4.7% compared with net sales of $128,582,000 for the second quarter of fiscal 1998. Net income rose 6.4% to $2,438,000, or $.17 per basic and diluted share, compared with net income of $2,292,000, or $.16 per basic and diluted share, for the same period a year ago.

For the six months ended April 30, 1999, the Company reported net sales of $260,815,000, up 7.7 % from net sales of $242,256,000 for the first half of fiscal 1998. Net income for the fiscal 1999 period totaled $5,882,000, or $.41 per basic and diluted share, compared with a net loss of $1,658,000, or $.12 per basic and diluted share, for the same period of fiscal 1998.

Joe F. Sanderson, Jr., President and Chief Executive Officer, commented, “During the second quarter, a planned increase in the average live weight of chickens and more favorable prices for feed grains contributed to the improvements in the bottom line. These factors more than offset a decline in poultry prices compared with a year ago.”

According to Sanderson, a simple average of the cash market prices for corn and soy meal, the Company's two primary feed ingredients, declined 15.8% and 21.3%, respectively, compared with the second quarter of fiscal 1998, while the average sale price for the Company's poultry products fell 5.5%. “The average sale price of poultry products continues to be affected by low prices for leg quarters. During the second quarter, average leg quarter prices were approximately 48% below year ago levels, primarily due to economic problems in Russia,” said Sanderson.

“The increase in live weight per bird to better serve the retail and full- service restaurant markets has resulted in improved processing margins,” Sanderson added, “and we are very pleased with the results of our sales efforts in these markets. We anticipate, however, that the problems in Russia and continued softness in the export market will remain a challenge for our industry during the coming months.”

Sanderson Farms, Inc. is engaged in the production, processing, marketing and distribution of fresh and frozen chicken and other prepared food items. Its shares trade on the Nasdaq Stock Market under the symbol SAFM.

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