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Sound's serious!
Maybe she's trying to turn a profit on your chickens.
CHICAGO, Feb 26 (Reuters) - U.S. chicken producer Sanderson Farms Inc (SAFM.O) said based on current feed costs and chicken prices, the chickens in its inventory should be profitable when sold during its second fiscal quarter that runs through April.
However, the company would not provide a forecast for second-quarter results during the conference call with Wall Street analysts on Thursday.
"Based on the current markets and where we think they will be when we sell those live chickens they will be sold at a positive operating margin," said
Mike Cockrell, Sanderson's chief financial officer.
Earlier on Thursday, the No. 4 U.S. chicken producer reported a net loss of $6.7 million, or 33 cents a share, for the first quarter ended Jan. 31, largely due to high-cost feed and a slowdown in restaurant dining.
In response to the recent losses, U.S. chicken companies have reduced production.
Feed costs have since come down but not enough, Sanderson's Chief Executive Joe Sanderson said during the call.
"The decline in feed grains have not been enough yet to restore margins," Sanderson said. "I don't think anybody is getting ready to restore egg sets."
Egg sets are those eggs designated to hatch into meat-producing chickens.