SAFM’s Profits Jump 34%

Chicken producer, Sanderson Farms Inc SAFM, posted a 34% jump in its fiscal Q2 net profit on strong demand for chicken at retail grocery stores. The Mississippi-based company said its net profit for the quarter came in at $35.1 million, or $1.62 per share, from $26.2 million, or $1.25 per share, in the same quarter a year ago. SAFM’s net sales rose 14% to $487.1 million, as compared to $426.8 million for the same period a year ago. According to CEO Joe Sanderson, "Demand for chicken at retail grocery stores remains strong and the ongoing issues we and our industry face in export markets have not yet significantly disrupted the markets." He was also pleased with Sanderson Farms’ performance during the quarter. He further added that, "As has been the case for two years, demand from some food service customers continues to be adversely affected by the economic downturn as demand for protein consumed away from home remains soft." SAFM’s shares gained 1.24% to $54.49 in after hours trading. Read more from Benzinga's Company news.