USA: Cal-Maine Foods reports Q3 results down on oversupply of eggs
Egg producer Cal-Maine Foods has reported results for the Q3 and nine months ended 2 March 2002.
Net sales for the Q3 of fiscal 2002 were US$86.9m compared with US$103.9m for the same quarter of fiscal 2001. The company reported a net loss of US$551,000, or US$0.05/share, for the Q3 of fiscal 2002, compared with net income of US$4,788,000, or US$0.40/share, for the same quarter a year ago.
For the first nine months of fiscal 2002, net sales were US$243.1m compared with US$272m for the same period a year ago. Cal-Maine reported a net loss of US$8.7m, or US$0.74/share, for the first nine months of 2002 compared with net income of US$6.4m, or US$0.53/share, year on year.
Fred Adams, Jr., chairman and CEO of Cal-Maine Foods, stated: "While egg demand has been good for the past year, the industry has continued to produce slightly more eggs than could be sold profitably. Feed costs and other operating costs have been favourable.
"While our operating efficiency continues to be good and the financial strength of our company sound, this overabundance of product has resulted in Cal-Maine reporting a net loss for the first nine months of fiscal 2002. Baby chick placements during the last four months have been below that of a year earlier, and this indicates that egg supply in the months ahead could be reduced. However, the timing of our return to profitability will be uncertain until supply and demand factors are more in balance."
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