December 30, 2008
Cal-Maine posts 32-percent fall in 2Q profit
US egg producer Cal-Maine Foods Inc. has posted a 32-percent fall in its second quarter profit due to slowing sales.
For the quarter that ended November 29, Cal-Maine earned US$27.2 million, down from US$40.2 million a year ago.
Revenue, however, increased 6.5 percent to US$238.3 million from US$223.7 million last year.
The results reflect good egg demand from retailers, but a declining demand from the institutional and food service sector, said Cal-Maine chief executive Fred Adams Jr.
"Sales to the egg products industry were weaker, reflecting the slowing economy and credit challenges for the importers of dried and frozen eggs around the world," said Adams.
Feed costs were lower than the previous quarter, especially with corn and soymeal prices, but prices are likely to remain relatively high and volatile over the year ahead, said Adams.