Cal-Maine income down 32% in quarter

by Staff
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JACKSON, MISS. — Income for Cal-Maine Foods, Inc. was down 32% for the quarter ended Nov. 29. For the second quarter, the company had net income of $27,244,000, equal to $1.15 per share on the common stock, down from $40,154,000, or $1.70 per share, during the same quarter of the previous year.

Sales for the quarter were $238,314,000, up 7% from $223,696,000 during the same quarter of the previous year.

"We were generally pleased with our performance for the second quarter of fiscal 2009," said Fred Adams Jr., chairman and chief executive officer. "Our financial results reflect good demand for eggs at the retail level but a declining demand for eggs from the institutional and food service sector. Sales to the egg products industry were weaker reflecting the slowing economy and credit challenges for the importers of dried and frozen eggs around the world. However, our feed costs were lower than the previous quarter with both corn and soybean meal prices moving sharply lower through the second quarter. All of our operations ran smoothly during the quarter."

For the six months ended Nov. 29, the company had income of $38,391,000, or $1.62 per share, down 34% from $58,120,000, or $2.46 per share, during the same period of the previous year.

Sales for the six months were $445,202,000, down 11% from $402,294,000 during the same period of the previous year.

"Looking ahead, we see continued strong egg demand at retail with slower demand from the food service and the egg products industries as participants work through current credit issues," Mr. Adams said. "We expect total egg supply to be in balance with demand. Feed costs, while much improved, will likely remain relatively high and could be volatile in the year ahead."

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