A 14 percent-point reduction in federal income tax boosted Sanderson Farms Inc.’s first fiscal quarter’s net income by $37.5 million, the Laurel-based poultry processor announced Wednesday after close of the Nasdaq stock market.
Thanks to that tax liability reduction, the company reported in a release that net income was $51.2 million, or $2.24 per share, for the quarter compared with net income of $24 million, or $1.06 per share, for the first quarter of fiscal 2017.
Net sales for the first quarter of fiscal 2018 were $771.9 million compared with $688.3 million for the same period a year ago.
Sanderson shares fell $3.44 to $128 on the Nasdaq on Wednesday. They have traded from a low of $89.75 to a high of $176.43 in the past 52 weeks.
“Our results for the first quarter reflect higher market prices for dark meat products sold from our big bird deboning plants compared with last yearâ€™s first quarter, offset by lower white meat prices,” Joe F. Sanderson, Jr., chairman and chief executive officer of Sanderson Farms, said in the release.
“Record corn and soybean crops harvested in the United States last fall contributed to healthy soybean and corn balance tables heading into the 2018 planting season,” added Sanderson. “Strong export demand and weather challenges for the Argentine crops, however, have supported higher prices for both corn and soybeans despite ample supplies of both grains.
“Construction at our new Tyler, Texas, complex began in the fall of 2017 and continues on schedule to open in the first calendar quarter of 2019. We reached near full production at the company. St. Pauls, N.C., plant in January and will move to full production in April,” Sanderson added.
— MBJ staff
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