Cal-Maine earnings drop after egg prices fall
July 27, 2009
by FoodBusinessNews.net Staff
JACKSON, MISS. — Cal-Maine Foods, Inc. posted net income of $79.5 million, equal to $3.34 per share on the common stock, for the fiscal year ended May 30, which compared with net income of $151.9 million, or $6.41 per share, in the fiscal year ended May 31, 2008. Fiscal year net sales rose to $928.8 million from $915.9 million.
Fourth-quarter net income was $10.3 million, or 43c per share, which compared with $36.6 million, or $1.54 per share, in the previous year’s fourth quarter. Net sales for the quarter were $213.6 million, down from $235.6 million in the previous year’s fourth quarter.
"These results reflect lower egg prices than a year ago," said Fred Adams Jr., chairman and chief executive officer of Jackson-based Cal-Maine Foods. "Our feed costs for the quarter were also lower compared with the same period last year, however they were still high by historical standards.
"Sales of eggs at the retail level have been very strong with food service and restaurant volume continuing to lag, reflecting the current economic environment."
For the year ahead the company expects to see good demand while feed costs may remain relatively high and volatile, Mr. Adams said. Cal-Maine Foods produces, grades, packs and sells fresh shell eggs.