Cal-Maine Foods profit falls 46% in Q3
March 30, 2009
by FoodBusinessNews.net Staff
JACKSON, MISS. — Earnings at Cal-Maine Foods, Inc. fell 46% in the third quarter, dragged down by depressed food service and restaurant volumes as consumers ate at home more. Net income in the quarter ended Feb. 28 was $30,843,000, equal to $1.30 per share on the common stock, down from $57,183,000, or $2.41 per share, in the same period a year ago.
Sales for the quarter were $270,009,000, down 3% from $278,017,000 during the same quarter of the previous year.
"Egg prices were lower compared with the year earlier period, which were at record high levels," said Fred Adams Jr., chairman and chief executive officer. "Egg demand at retail stores was very good. However, food service and restaurant volumes were reduced because of the slowdown in the economy and fewer consumers eating away from home. Liquid, frozen and dried egg demand was fairly good at lower prices. Our feed costs were lower than they were the same period a year ago.
"For the year ahead, we expect to see egg supply balanced with demand. Feed costs will continue to be relatively high and volatile. All of our operations continue to run smoothly."
For the nine months ended Feb. 28, the company had income of $69,234,000, or $2.91 per share, down 40% from $115,303,000, or $4.87 per share, during the same period of the previous year.
Sales for the nine months were $715,211,000, up 5% from $680,311,000 during the same period of the previous year.