Cagle's net income edges down for FY2010

Cagle's, Inc. reported net income of US$2.5 million or US$0.55 per share for fiscal year 2010 compared to a net loss of US$11.5 million or US$2.48 per share for fiscal year 2009.

However, revenue increased to US$307.1 million or 5.0% from fiscal 2009. Quoted markets were variable with breast, wings and tenders up while all dark meat items were down. Cost of sales decreased US$7.3 million or 2.5% from last year reflecting lower feed cost of US$32 per tonne or 11.2%.

Cagle's saw improvements in key financial ratios for fiscal 2010 as we reduced debt and vendor obligations by US$7.7 million or 14.9% and stockholders' equity increased by 10.5% or US$3.4 million.

The poultry industry continues to practice restraint with egg sets and chick placements continuing below 2007 and 2008 levels and only moderately above 2009 levels.

Pork and beef herds and frozen stocks are at relatively low levels and it appears it will be difficult for either industry to expand in 2010.

Meanwhile, Cagle's anticipates that economic conditions will continue to improve and the value and demand for poultry will increase providing positive margins for the remainder of this fiscal year.