Cal-Maine income down 3% in quarter
March 28, 2011
JACKSON, MISS. — As a result of higher feed costs, income for Cal-Maine Foods, Inc. was down 3% during the third quarter.
Income for the quarter ended Feb. 26 was $33,619,000, equal to $1.41 per share on the common stock, which compared with an income of $34,534,000, equal to $1.45 per share, during the same quarter of the previous year. Sales for the quarter were $274,674,000, up 1% from $271,156,000 during the same quarter of the previous year.
“We are pleased with our results for the third quarter of fiscal 2011,” said Dolph Baker, president and chief executive officer. “While our sales and volumes showed improvement over the prior-year period, our profitability was affected by higher feed costs. Demand for eggs at the retail level remained strong and specialty egg sales continued to grow, accounting for 23.5% of our revenues for the quarter and 17.5% of total dozens sold. Shell egg prices, as reflected in the Urner Barry market, were slightly lower compared with the third quarter of fiscal 2010; however, the higher volume of specialty egg sales, which carry a higher selling price, offset the drop in average market prices.
“Overall, the national egg supply was up slightly compared with the same period a year ago. The national chick hatch has recently been trending higher and could affect future supply levels.
“Our operations have continued to run well, however, feed costs have remained high and volatile. For the third quarter of fiscal 2011, our feed costs increased 5.7c per dozen eggs, reflecting higher overall grain prices, especially for corn, which are at near-record levels. We expect this trend in grain prices to continue for the remainder of fiscal 2011 and beyond.”
For the nine months ended Feb. 26, the company had an income of $53,568,000, equal to $2.25 per share, down 14% from $46,796,000, equal to $1.97 per share during the same period of the previous year. Sales for the period were $699,600,000, up 2% from $688,055,000 during the same period of the previous year.