Saturday, January 3, 2009

Cal-Maine reports drop in second-quarter income

Cal-Maine Foods Inc. reported net income of $27.2 million, or $1.15 per basic share, for the second quarter of fiscal 2009 compared with net income of $40.2 million, or $1.70 per basic share, for the second quarter of fiscal 2008.
The company’s net sales rose 7% to $238.3 million from $223.7 million last year.
"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," said CEO Fred Adams, Jr. "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, feed costs were lower than the previous quarter, particularly with corn and soybean meal prices, he said. In the prior quarter, feed costs helped weigh down profit. But, those prices are likely to remain relatively high and volatile over the year ahead, Adams added.

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