February 12, 2009

Cagle's Inc. widened a loss of US$2.5 million for the third quarter ended January 3, which compared with a loss of US$1.7 million during the same quarter of the previous year.

Sales for the third quarter were US$73 million, up 10 percent from US$66.9 million during the same quarter of the previous year.

The company said while feed costs increased from prior year levels, Cagle's third-quarter feed costs decreased 18 percent compared with the second quarter.

The company said that as Cagle's move into the fourth quarter, the trend will continue to reflect the decreasing cost of feed.

It said the industry and Cagle's continue to attempt to balance the supply and demand for their products with the anticipated result of improved protein markets.

It also said improved protein markets coupled with the preceding reduced feed cost are expected to return the company to profitability in 2009.

For the nine months Cagle's had a loss of US$10.9 million, which compared with income of US$1.1 million during the same period of the previous year.

Sales for the nine months were US$226 million, up 5 percent from the same period of the previous year.