000774 Sanderson Sees Q3 Loss on Weak Poultry Market

Laurel, MS - Sanderson Farms Inc. said it expects its third quarter loss to be greater than consensus analyst estimates due to continued weakness in the domestic poultry market.

Sanderson, which produces, processes, markets and distributes chicken and other prepared food, expects a loss of between 36 cents to 44 cents per share for the quarter ending July 31. The Laurel, Miss.-based has posted losses per share for its first two quarters of fiscal 2000 but had a profit of of 26 cents per share in its third quarter 1999.

"Market prices have had a significant impact on prices of the company's chicken products during our third fiscal quarter as the industry continues to be adversely affected by an over supply of chicken and other meats, President and Chief Executive Officer Joe Sanderson Jr. said in a statement. He also noted that breast meat prices were historically low during a typically peak poultry demand period.

“While we are optimistic that market conditions will improve, we do not anticipate any significant change before the end of our current fiscal year,” Sanderson said.

The company also said its board declared a regular quarterly cash dividend of 5 cents per share payable Aug 22 to stockholders of record on Aug 8.

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