Egg prices boost Cal-Maine Foods' third quarter results
April 02, 2007
by FoodBusinessNews.net Staff
JACKSON, MISS. — Net income for Cal-Maine Foods Inc. was $17,403,000, or 74c per basic share, during the third quarter of 2007, an increase compared with the same period during the previous year at $7,990,000, or 34c per basic share. Net sales were $175,211,000, an increase of 35% compared with $130,107,000 for the same quarter of the previous year.
"During the third quarter of fiscal 2007, our egg supply was well balanced with good demand from our retail and food service customers," said Fred Adams Jr., chairman and chief executive officer. "In addition, the egg industry, through a marketing cooperative that included Cal-Maine, put together an export sale to Europe, the United Kingdom and Japan that required approximately 16 million dozen eggs. This significant drawdown of inventory put upward pressure on egg prices and resulted in more favorable market conditions for the quarter. Costs for corn and soybean meal, our primary feed ingredients, were higher for the quarter as a result of strong demand from ethanol plants."
Mr. Adams also said the company anticipates higher feed costs to continue. He added that Cal-Maine has a strong start for the fourth quarter with the high egg demand around Easter.