September 30, 2009

Cal-Maine Foods has announced a loss of US$3.8 million for its first quarter of fiscal 2009-10 ended August 28, due to lower egg selling prices.

The results are in stark contrast with results from the first quarter of last year when net income was US$11.1 million.

Sales during the first quarter of 2009-10 were US$187.6 million compared with sales of US$206,9 million for the first quarter of 2008-09.

Still, Cal-Maine chairman and CEO Fred Adams Jr. considered the results satisfactory, as egg sales and production had increased year-on-year, with the performance dragged down only by prices.

The company's feed costs were down considerably from the same period last year, but not enough to offset the price decline, Adams said.

He said eggs demand at the retail level remained strong, but sales to restaurants and foodservices were weaker due to the current economy.