US: Cal-Maine swings to Q1 profit
US egg producer Cal-Maine Foods has swung to a first-quarter profit on the back of higher sales and an insurance gain related to fire damage at a site in Texas in July 2009.
The company booked net income of US$4.8m for the the 13 weeks to 28 August, against a net loss of $3.8m a year earlier. The profit for the quarter included the insurance gain, which amounted to $2.6m. Net sales were $190.4m, up from $187.7m a year ago.
Chairman and CEO Fred Adams said last month's nationwide egg recall by Wright County Egg of Galt had had a "minimal effect" on the company's results.
Adams said: "While egg prices initially moved higher in late August, prices have since dropped back below levels prior to the recall. Consumer demand for eggs has also dropped off since the recall; however, it is still too soon to predict the long-term effect on demand trends."
Companies: Cal-Maine Foods
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