* Q2 adj share loss $0.56 vs year ago EPS $1.62
* Rev $479.3 million vs yr ago $487.1 million
* Feed costs up 41.3 pct, breast meat prices down
(Adds details, CHICAGO dateline)
CHICAGO, May 24, U.S. chicken producer
Sanderson Farms Inc (SAFM.O) Inc reported a quarterly loss as
the company coped with higher feed costs and lower chicken
prices, but the results beat Wall Street estimates.
The Laurel, Mississippi-based company reported a loss of
$16.28 million, or 74 cents per share, for the quarter ended
April 30, compared with a year-earlier profit of $35.09
million, or $1.62 per share.
Minus a $6 million charge for inventory value adjustment,
the loss was $12.3 million, or 56 cents a share.
Wall Street expected a loss of 85 cents a share, according
to Thomson Reuters I/B/E/S.
Revenue slipped to $479.34 million from $487.1 million.
Feed costs rose 41.3 percent in the quarter and should stay
high for the rest of the year, the company said. Feed costs are
up due to strong demand for corn by livestock producers, grain
exporters and the ethanol industry.
High gasoline prices and high unemployment have hurt
restaurant sales, while grocery sales and exports have remained
strong, the company said.
For the quarter, breast meat prices were down 10.6 percent,
wings down 45.5 percent. A resumption of exports to Russia
pushed leg quarter prices up 45.5 percent.
Sanderson's shares closed Monday at $45.99 in Nasdaq
trading, up 17.5 percent year-to-date, but down from its
52-week high of 55.67 in June last year.
(Additional reporting by Abhishek Takle in Bangalore; Editing
by Sriraj Kalluvila, Dave Zimmerman)