Laurel, Miss.-based Sanderson Farms produces, processes, markets and distributes chicken. With more than 8,600 employees, the company output is over 1.5 billion pounds of product a year, generated by production facilities in Mississippi, Georgia, Louisiana and Texas.
Don't think chicken is big business? In 2005 the company posted revenues of just over $1 billion -- down 4.4% from 2004 results. Its 2005 profit margin was 7% and its return on equity was 25.3%.
However, net sales for the first quarter of fiscal 2006 were $222 million compared with $233 million for the same period a year ago. For the quarter, the net loss was $8.6 million.
The company notes that first-quarter results reflect a receivable from the company's insurance carriers of $12.9 million for property damage, expenses incurred and lost profits resulting from Hurricane Katrina.
Sanderson also notes overall market prices for poultry products were significantly lower in the first quarter of 2006 compared with prices a year ago.
"Although market conditions are difficult, we intend to focus our efforts on the aspects of our business we can control, and we remain optimistic about our prospects for fiscal 2006," said Joe F. Sanderson Jr., chairman and CEO.
IW 50 Best Manufacturing Company
