010558 Sanderson Farms Reports 2nd Quarter 2001 Results

Laurel, MS - Sanderson Farms, Inc. reported results for the second quarter and first six months of fiscal 2001.

For the three months ended April 30, 2001, the Company reported net sales of $163,583,000, up 17% compared with net sales of $139,781,000 for the second quarter of fiscal 2000. The Company reported net income of $5,018,000, or $0.37 per basic and diluted share, compared with a net loss of $4,497,000, or ($0.33) per basic and diluted share, for the same period a year ago.

For the six months ended April 30, 2001, the Company reported net sales of $315,664,000, up 14% from net sales of $276,789,000 for the first half of fiscal 2000. The Company reported net income of $5,402,000, or $0.40 per basic and diluted share, for the first half of fiscal 2001 compared with a net loss of $5,912,000, or ($0.43) per basic and diluted share, for the same period of fiscal 2000.

Joe F. Sanderson, Jr., president and chief executive officer of Sanderson Farms, Inc. commented, “We are pleased with the results for the second fiscal quarter as we experienced a more favorable market environment reflecting a modest increase in prices. I am also pleased with our Company's operating performance during the first half of this fiscal year as we continue to improve our operating efficiencies.”

According to Sanderson, market prices for poultry products, as measured by a simple average of the Georgia dock price for whole chickens, increased approximately 7.8% in the Company's second fiscal quarter compared with the same period in 2000. For the first six months of fiscal 2001 whole bird prices increased 6.5% as compared with the same period last year. While market prices for boneless breast meat remained flat during the second quarter compared to the second quarter a year ago, and actually decreased 5.4% during the first half of fiscal 2001 compared to the first half of fiscal 2000, market prices for leg quarters during the first quarter and first six months of the year increased 27.4% and 22.2%, respectively, reflecting an increase in export demand for poultry products, primarily due to renewed interest from Russia.

“We are encouraged that our improved earnings were realized with only a modest increase in market prices, validating to a large extent the marketing changes we have implemented over the past several years as well as ongoing improvements to our operations,” added Sanderson. “Our sales and marketing programs continue to gain momentum and have made significant progress toward meeting our targeted product mix.”

“Looking ahead, we are cautiously optimistic about seeing further improvement in market conditions as the summer months are traditionally a period of peak demand for poultry products. In addition, we believe the supply side looks more manageable with some indicators pointing to flat-to- modest growth in production as measured by total egg sets and declining breeder placements,” concluded Sanderson.

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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