April 3, 2007

Increased demand, exports boost Cal-Maine Foods fiscal Q3 profits
 

US egg giant Cal-Maine Foods Inc. has registered a net income of US$17.4 million for its fiscal third quarter ending Mar 3, a jump from US$8 million during the same period last year.

Increased retail demand and good export volumes accounted for the rise, with sales for the quarter rising on-year to US$175.2 million from US$130.1 million.

Chairman and chief executive Fred Adams Jr. said a significant export quantity of some "16 million dozen eggs" was shipped to Europe, the United Kingdom and Japan, which helped push up egg prices for the quarter.

However, Cal-Maine's profits were partially offset by higher costs for corn and soymeal, the company's main feed ingredients. With increasing demand for corn from the ethanol industry, corn prices have been on the rise.

The company said it started off well for the fiscal fourth quarter, thanks to improved domestic egg demand in the approach to the Easter holiday.