Sanderson Farms, Inc. (NASDAQ: SAFM) announced today that its Board of
Directors has approved plans to proceed with the construction and
start-up of the Company’s Kinston, North Carolina, poultry complex.
Sanderson Farms previously announced plans on April 24, 2008, to invest
approximately $126.5 million for construction of a new feed mill,
poultry processing plant and hatchery on separate sites in Kinston and
Lenoir County, North Carolina. On June 26, 2008, the Company announced
its decision to postpone the project due to market conditions and
escalating grain prices. The budget for the project is now expected to
be approximately $121.4 million.
The Kinston facilities will comprise a state-of-the-art poultry complex
with the capacity to process 1.25 million birds per week for the retail
chill pack market. At full capacity, the complex will employ
approximately 1,500 people, will require 130 contract growers, and will
be equipped to process and sell 6.7 million pounds per week of dressed
poultry meat at full production. The Company expects to begin
construction of the facilities later this summer, with initial operation
of the new complex scheduled to begin during the first quarter of fiscal
2011.
According to Joe F. Sanderson, Jr., chairman and chief executive officer
of Sanderson Farms, Inc., “We are pleased that better overall market
conditions, our financial performance and a strong balance sheet have
put us in the position to continue to grow our Company. We are also
proud to honor our commitment to the economic development and
governmental officials in, and citizens of, the City of Kinston, Lenoir
County and the State of North Carolina. We believe this expansion will
enhance our ability to drive revenues and earnings, and allow us to
continue our record of building long-term value for our shareholders.
The additional capacity of 1.25 million birds per week represented by
the new complex will provide new marketing opportunities for the Company
in the fresh retail market. We look forward to working with the local
communities in North Carolina that have graciously supported Sanderson
Farms and this project.”
The Board of Directors also declared a regular quarterly cash dividend
of $0.14 (fourteen cents) per share payable August 18, 2009 to
shareholders of record on August 4, 2009.
Sanderson Farms, Inc. is engaged in the production, processing,
marketing and distribution of fresh and frozen chicken and other
prepared food items. Its shares trade on the NASDAQ Stock Market under
the symbol SAFM.
This press release contains forward-looking statements based on
management's current views and assumptions. Actual results and
events may differ. For a discussion of these matters, please
refer to the "Cautionary Statement Regarding Risks and Uncertainties
That May Affect Future Performance" in Item 7 of the Company's 2008
Annual Report on Form 10-K and please refer to the cautionary statement
found in Management's Discussion and Analysis of Financial Condition and
Results of Operations under the heading "General" in Part I, Item 2 of
the Quarterly Report on Form 10-Q for the Company's second quarter ended
April 30, 2009.
Sanderson Farms, Inc.
Mike Cockrell, 601-649-4030
Treasurer
& Chief Financial Officer
