Cal-Maine Foods income down 38% in quarter
September 29, 2008
by FoodBusinessNews.net Staff
JACKSON, MISS. — For the first quarter ended Aug. 30, Cal-Maine Foods, Inc. posted net income of $11,147,000, equal to 47c per share on the common stock, down 38% from $17,966,000, or 76c per share, during the same quarter of the previous year.
Sales for the quarter were $206,888,000, up 16% from $178,598,000 during the same quarter of the previous year.
"Egg prices and total dozens sold were both up for the first quarter of fiscal 2009 compared with the same period last year," said Fred Adams Jr., chairman and chief executive officer. "Demand for eggs was strong in both the retail and food service markets. However, our feed costs were dramatically higher and reduced the company’s earnings for the quarter compared with a year ago. Corn and soybean meal prices peaked in July but have dropped substantially in the last few weeks. While estimates for the final crop yields vary widely, it is expected that feed prices will remain volatile and high for the year ahead. U.S.D.A. statistics indicate that egg supply will remain flat for the next few months. All of Cal-Maine’s operations continue to run smoothly."