March 27, 2012

Cal-Maine Foods Q3 profit down 22%

Weighed down by increasing feed costs, Cal-Maine Foods Inc. said Monday (Mar 26) that its fiscal third-quarter profit tumbled 22%.

President and CEO Dolph Baker said in a statement that the company expects feed costs will remain very high and volatile throughout the summer due to tight supplies of corn and soy, which are Cal-Maine's primary feed ingredients.

The Jackson, Miss., company reported that its net income fell to US$26.1 million, or US$1.09 per share, for the period ended February 25, down from US$33.6 million, or US$1.40 per share, a year earlier.

Revenue increased 11% to US$303.7 million from US$274.7 million on higher average selling prices and solid demand for shell eggs.

Average selling prices for shell eggs climbed 3% in the quarter, while specialty egg prices rose 9%. Specialty eggs include nutritionally enhanced, cage-free and organic eggs.

Feed costs climbed US$0.045 per dozen eggs from a year ago.

The company said it will pay a third-quarter dividend of about US$0.364 per share. The dividend will be paid on May 10 to shareholders of record on April 25.

Cal-Maine shares finished at US$41.95 in trading on Friday (Mar 23). They hit a 52-week high of US$42.38 on March 14 and traded as low as US$27.51 in early May 2011.