Sanderson Farms, Inc. (NASDAQ: SAFM) today provided an update on
the Company’s operations and the impact of Hurricane Ida on its
locations in Louisiana and Mississippi.
“We are thankful that we have not had any reports of injuries to
any of our employees as a result of this devastating hurricane,”
said Joe F. Sanderson, Jr., chairman and chief executive officer of
Sanderson Farms, Inc. “We have experience managing through
catastrophic weather events, and we were prepared to respond to
Hurricane Ida and do all we can to protect our assets. Our top
priority has been and will continue to be the safety of our
employees, contractors and independent contract producers, and the
health and wellbeing of the animals under our care.
“All of our facilities have power except for Hammond, Louisiana,
and the feed mill and hatchery in McComb, Mississippi. Those
facilities will operate on generator power until utilities are
restored. Fortunately, none of our facilities have experienced any
significant structural damage. Our operations in Hammond, as well
as all our Mississippi locations, will not operate today, but we
expect to resume production in Laurel, Collins, Hazlehurst and
Jackson, Mississippi, tomorrow. The widespread power outages are
creating challenges for our employees in Hammond and McComb, but we
hope these locations will be back in operation later this week. We
also expect to operate over the holiday weekend, including Monday,
to catch up on lost production.
“We are pleased to report no significant bird loss and currently
have 650 broiler houses, 17 pullet houses and 48 breeder houses
operating on generator power. In anticipation of the storm and
resulting power outages, we topped off feed bins and fuel tanks,
tested generators and prepared farms before the storm hit to ensure
our growers have adequate supplies of feed and fuel to care for
flocks until power is restored.
“Hurricane Ida was a storm of historic proportions, and we are
deeply saddened by the extreme devastation and losses that have
occurred. We are grateful for the support from local authorities
and the heroic work of first responders who are dealing with the
aftermath of the storm as conditions allow. We will continue to
help those displaced by the storm, including providing ice and food
to the affected areas when it is safe to do so,” added
Sanderson.
Sanderson Farms, Inc. is engaged in the production, processing,
marketing and distribution of fresh, frozen and minimally prepared
chicken. Its shares trade on the NASDAQ Global Select Market under
the symbol SAFM.
This press release includes forward-looking statements within
the meaning of the “safe harbor” provisions of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Forward-looking
statements are based on a number of assumptions about future events
and are subject to various risks, uncertainties and other factors
that may cause actual results to differ materially from the views,
beliefs, projections and estimates expressed in such statements.
These risks, uncertainties and other factors include, but are not
limited to, those discussed under “Risk Factors” in the Company’s
Annual Report on Form 10-K for the fiscal year ended October 31,
2020, and Quarterly Report on Form 10-Q for the quarter ended July
31, 2021, and the following:
(1)
Changes in the market price for the
Company’s finished products and feed grains, both of which may
fluctuate substantially and exhibit cyclical characteristics
typically associated with commodity markets.
(2)
Changes in economic and business
conditions, monetary and fiscal policies or the amount of growth,
stagnation or recession in the global or U.S. economies, any of
which may affect the value of inventories, the collectability of
accounts receivable or the financial integrity of customers, and
the ability of the end user or consumer to afford protein.
(3)
Changes in the political or economic
climate, trade policies, laws and regulations or the domestic
poultry industry of countries to which the Company or other
companies in the poultry industry ship product, and other changes
that might limit the Company’s or the industry’s access to foreign
markets.
(4)
Changes in laws, regulations, and other
activities in government agencies and similar organizations
applicable to the Company and the poultry industry and changes in
laws, regulations and other activities in government agencies and
similar organizations related to food safety.
(5)
Various inventory risks due to changes in
market conditions, including, but not limited to, the risk that net
realizable values of live and processed poultry inventories might
be lower than the cost of such inventories, requiring a downward
adjustment to record the value of such inventories at the lower of
cost or net realizable value as required by generally accepted
accounting principles.
(6)
Changes in and effects of competition,
which is significant in all markets in which the Company competes,
and the effectiveness of marketing and advertising programs. The
Company competes with regional and national firms, some of which
have greater financial and marketing resources than the
Company.
(7)
Changes in accounting policies and
practices adopted voluntarily by the Company or required to be
adopted by accounting principles generally accepted in the United
States.
(8)
Disease outbreaks affecting the
production, performance and/or marketability of the Company’s
poultry products, or the contamination of its products.
(9)
Changes in the availability and cost of
labor and growers.
(10)
The loss of any of the Company’s major
customers.
(11)
Inclement weather that could hurt Company
flocks or otherwise adversely affect the Company’s operations, or
changes in global weather patterns that could affect the supply and
price of feed grains.
(12)
Failure to respond to changing consumer
preferences and negative or competitive media campaigns.
(13)
Failure to successfully and efficiently
start up and run a new plant or integrate any business the Company
might acquire.
(14)
Unfavorable results from currently pending
litigation and proceedings or litigation and proceedings that could
arise in the future.
(15)
Changes resulting from the COVID-19
pandemic, which could exacerbate any of the risks described above,
and could include: high absentee rates that have prevented and may
continue to prevent the Company from running some of its facilities
at full capacity, or could in the future cause facility closures;
an inability of contract poultry producers to manage their flocks;
supply chain disruptions for feed grains; further changes in
customer orders due to shifting consumer patterns; disruptions in
logistics and the distribution chain for the Company’s products;
liquidity challenges; and a continued or worsening decline in
global commercial activity, among other unfavorable conditions.
(16)
Risks relating to the Company’s
recently-announced entry into a definitive agreement to be acquired
by a joint venture between Cargill, Incorporated (“Cargill”) and
Continental Grain Company (“CGC”), including: the timing, receipt
and terms and conditions of any required governmental or regulatory
approvals of the proposed transaction and the related transactions
involving affiliates of Cargill and CGC that could reduce the
anticipated benefits of or cause the parties to abandon the
proposed transaction; risks related to the satisfaction of the
conditions to closing the proposed transaction (including the
failure to obtain necessary regulatory approvals or the approval of
the Company's stockholders), and the related transactions involving
affiliates of Cargill and CGC, in the anticipated timeframe or at
all; the risk that any announcements relating to the proposed
transaction could have adverse effects on the market price of the
Company's common stock; disruption from the proposed transaction
making it more difficult to maintain business and operational
relationships, including retaining and hiring key personnel and
maintaining relationships with the Company’s customers, vendors and
others with whom it does business; the occurrence of any event,
change or other circumstances that could give rise to the
termination of the merger agreement entered into pursuant to the
proposed transaction or of the transactions involving affiliates of
Cargill and CGC; risks related to disruption of management's
attention from the Company's ongoing business operations due to the
proposed transaction; significant transaction costs; and the risk
of litigation and/or regulatory actions related to the proposed
transaction or unfavorable results from currently pending
litigation and proceedings or litigation and proceedings that could
arise in the future.
Readers are cautioned not to place undue reliance on
forward-looking statements made by or on behalf of Sanderson Farms.
Each such statement speaks only as of the day it was made. The
Company undertakes no obligation to update or to revise any
forward-looking statements. The factors described above cannot be
controlled by the Company. When used in this press release, the
words “believes,” “estimates,” “plans,” “expects,” “should,”
“could,” “outlook,” and “anticipates” and similar expressions as
they relate to the Company or its management are intended to
identify forward‑looking statements. Examples of forward-looking
statements include statements of the Company’s belief about future
operations, operating conditions, and condition of Company
assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210830005539/en/
Mike Cockrell Treasurer, Chief Financial Officer &
Chief Legal Officer (601) 649-4030
Sanderson Farms (NASDAQ:SAFM)
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