Cagle's reports loss on higher sales for fiscal 2009

Cagle's Inc. suffered a net loss of US$11.5 million or US$2.48 per diluted share for fiscal year 2009, compared with a net loss of US$0.77 million or US$0.17 per diluted share for fiscal 2008. Operating income for fiscal 2009 was a loss of US$15.7 million compared to operating income of $0.14 million for fiscal 2008.

Fiscal 2009 revenues, however, were US$292.6 million, a 3.1 percent increase compared to fiscal 2008 with poultry prices increasing US$0.024 per lb. sold. Quoted market prices for the year 2009 versus 2008 reflect a reduction in boneless breasts of - 13.6 percent; breast tenders, -7.2 percent; wings, -9.2 percent; and leg quarters, -3.4 percent.

Fiscal 2009 cost of sales increased 9.2 percent as compared with 2008, from US$268.5 million to US$293.2 million. Processed feed ingredient cost per tonne for broilers in 2009 increased 23.5 percent or US$20.3 million as compared to fiscal 2008. Feed cost represented approximately 36 percent of total cost of sales in 2009.

The company's fourth-quarter operating income approached the breakeven mark as revenue per lb. improved by more than 3 percent and cost of sales fell 1.6 percent.