December 28, 2010

Cal-Maine's profit decreases on higher feed costs

US egg supplier, Cal-Maine Foods Inc, reported a lower-than-expected quarterly profit, due to higher feed costs which would also remain a concern for the company in fiscal 2011.

"The current and expected balance of supply and demand for corn and soymeal points to a tight feed supply throughout the next marketing year," Chief Executive, Dolph Baker, said.

For the second quarter, the company reported a net income of US$15.2 million, or US$0.63 of share, compared with a net income of US$16.1 million, or US$0.67 per share, a year ago.

Revenue for the quarter rose 2% to US$234.5 million.

Shares of the Jackson, Mississippi-based company, which has gained about 14% in value since reporting first-quarter results in September, closed at US$33.82 on Thursday (Dec 30) on Nasdaq.