Cal-Maine Foods' fiscal Q4 earnings fell 65% to US$7.3M as revenue rose 9% to US$242.4M; soaring feed costs blamed for earnings drop
July 25, 2011
– Cal-Maine Foods Inc., the nation's largest egg seller and distributor with about 18 percent of the market, said Monday that its fourth-quarter net income fell 65 percent as feed costs soared.
The company said a late Easter boosted egg prices by about 5 cents per dozen for the quarter, but feed costs rose 12 cents per dozen.
Net income fell to $7.3 million, or 30 cents per share, from $21 million, or 88 cents per share last year.
Revenue rose 9 percent to $242.4 million from $222.1 million in last year's fourth quarter.
Cal-Maine said it sold 206 million dozen eggs in the quarter, up from 195 million dozen a year earlier, while its annual volume rose to 821 million dozen from 805 million dozen in fiscal 2010.
The average selling price of eggs increased rose nearly 4 percent to $1.12 from $1.09 per dozen. Feed costs jumped 37 percent to 45 cents from 33 cents per dozen.
For the fiscal year, net income fell 10 percent to $60.8 million, or $2.54 per share, from $67.8 million, or $2.84 per share last year. Revenue rose nearly 4 percent to $942 million from $910.1 million last year.
Shares of Cal-Maine fell 11 cents to $35.40 in morning trading.
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