Cagle's outperforms year-ago result in Q2

Cagle's Inc., a vertically integrated poultry company, reported a net income of US$700,000 for the second quarter of fiscal year 2010, compared to a net loss of US$5.5 million a year ago.

Net income for the first six months of fiscal 2010 was US$2 million compared with a net loss of US$8.5 million for the same period last year.

Revenues increased 15.8 percent on-year to US$87.6 million, while volumes sold increased 14.7 percent. For the six-month period, revenues were up 8.5 percent to US$165.6 million while volumes sold increased 4.9 percent.

Quoted market prices for the second quarter of fiscal 2010 versus the same period a year ago fluctuated as boneless breast increased six percent, breast tenders increased 22 percent, wings increased 49 percent, drums decreased 14 percent, leg quarters down 24 percent and whole birds without giblets were six-percent less.

For the second quarter of fiscal 2010, cost of sales increased 2.7 percent on-year to US$81.8 million, reflecting a higher sales volume and an 8.6-percent reduction in the cost of feed. For the first six months of 2010, cost of sales was US$153.5 million down 2.4 percent from fiscal 2009.

Cagle's said wet weather throughout the Midwest has delayed and possibly damaged what appeared to be a record crop in both corn and soymeal, resulting in feed prices to increase as the company entered its third quarter.