US egg producer Cal-Maine Foods saw its profits more than halve for the first six months of fiscal 2010 as egg product sales dropped.
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For the six months ended 28 November, net profit amounted to US$12.3m from $38.4m in the previous year.
Net sales dropped slightly to $416.9m compared to $445.2m in the prior-year period.
“Food service and restaurant sales continued to be slow, reflecting economic trends, and egg product sales were down about two percent,” said chairman and CEO Fred Adams.
“Our feed costs were down for the quarter, which improved our profitability. Our management team did a good job and all of our operations have been running smoothly.”
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By GlobalDataLooking ahead, Adams said the company continues to see a “favourable balance” between egg supply and egg demand.
However, while better than a year ago, Adams said feed costs will continue to be “volatile and relatively high”.
For the second quarter, profit dropped to $16.1m from $27.2m a year ago, while sales fell 4% to $229.2m.
Cal-Maine Foods last week announced the election of James Hull as vice president of egg products.
Hull, previously president of American egg products, will now be responsible for all of Cal-Maine’s egg products division operations, including Texas egg products.
