US poultry processor Cagle's Inc. reports 2Q loss
Cagle's Inc. reported a net loss of US$5.5 million, or US$1.18 per diluted share, for the second quarter of fiscal year 2009, compared to a profit of US$1.4 million, or 29 cents per diluted share, during the same period last year.
The Atlanta-based company said sales for the quarter ended September 27, 2008 were US$75.6 million, almost similar to year-earlier results.
However, the cost of sales during the quarter increased 14.6 percent, up to US$79.7 million from US$69.5 million during the same period last year. Feed ingredients for broilers processed in the second quarter also rose, representing 43 percent of the total cost of sales, and rising 53.7 percent over the same prices in the second quarter of 2008.
Cagle's Inc. said in a statement that egg sets are the lowest in the last five years which should help to balance the industry's supply with present day's reduced protein demand in a better way and therefore result in improved prices for the company.
The company also believes that margins will improve as grain and poultry markets adjust to the changes currently in place and expect a move to profitability and brighter times in early 2009.