The egg company reported net income of $33.6 million, or $1.41 per basic share, for the third quarter, compared with net income of $34.5 million, or $1.45 per basic share, for the third quarter of fiscal 2010.
The results for the third quarter of fiscal 2011 include in other income a one-time cash distribution of approximately $4.8 million pre-tax, or $3.2 million or $0.13 per basic share after tax, received in exchange for the company’s non-voting stock ownership in the Eggland’s Best Inc. cooperative. Cal-Maine retains its membership in the cooperative and the transaction does not affect its existing specialty eggs marketing agreement with Eggland’s Best.
For the first nine months of fiscal 2011, net sales were $699.6 million, compared with net sales of $688.1 million for the prior-year period.
The company reported net income of $53.6 million, or $2.25 per basic share, for the first nine months, compared with net income of $46.8 million, or $1.97 per basic share, for the year-earlier period.
Dolph Baker, president and CEO of Cal-Maine, said, “While our sales and volumes showed improvement over the prior year period, our profitability was affected by higher feed costs. For the third quarter of fiscal 2011, our feed costs increased 5.7 cents per dozen eggs, reflecting higher overall grain prices, especially for corn, which are at near record levels. We expect this trend in grain prices to continue for the remainder of fiscal 2011 and beyond.”
Source: Cal-Maine Foods Inc.