Cagle's swings back to profitability in Q1

Cagle's Inc., a vertically integrated poultry company, has reported a net income of US$1.3 million for the first quarter, up from a net loss of US$3 million in the same period last year.

Revenues reached US$78 million, up 1.4 percent.

Quoted market prices for poultry products for the first quarter compared to the same period last year fluctuated as boneless breast increased one percent, breast tenders up 11 percent, wings surged 39 percent, drums decreased eight percent, leg quarters down four percent and whole birds without giblets were the same.

Cost of sales for the first quarter fell 7.6 percent on-year from US$77.6 million to US$71.7 million.

Feed ingredient prices for broilers processed in the first quarter, which represented 30 percent of total cost of sales, declined 28 percent on-year.

Good crop weather patterns as well as reductions in livestock inventories have resulted in declines in feed ingredient prices. With the continued drop in feed cost, the company is confident that it will maintain positive margins for the remainder of fiscal year 2010.