July 28, 2010

Cal-Maine's Q4 profits rise more than twofold

 

Cal-Maine Foods Inc., a major egg seller and distributor, said Monday (July 26) that its fourth quarter profit more than doubled as sales edged up and feed costs fell.

Revenue rose 4% to US$222.1 million from US$213.6 million last year.

The company got a boost from lower feed costs in the latest quarter, but Adams said it expects such costs "will be relatively high and volatile" this fiscal year. Its net income rose to US$21 million, or US$0.88 per share, in the three months ended May 29, up from US$10.3 million, or US$0.43 per share, a year ago.

"We benefited from favourable market conditions as egg supply and demand were well balanced, and average selling prices were higher than the prior year period. Our retail sales were good, and we were pleased with the modest improvement in our food service and restaurant egg sales," Chairman and CEO Fred Adams Jr. said.

Analysts expected the company, based in Jackson, Mississippi, to earn US$0.64 per share with revenue of US$234.9 million.

For the full-year, Cal-Maine's net income fell almost 15% to US$67.8 million, or US$2.85 per share. That's down from US$79.5 million, or US$3.34 per share. Revenue for the year slipped to US$910.1 million, down from US$928.8 million.

Cal-Maine Foods sells the majority of its shell eggs in approximately 29 states across the southwestern, southeastern, mid-western and mid-Atlantic regions of the US.