Cagle's net income, sales up for second quarter
November 11, 2009
by Bryan Salvage
ATLANTA — Net income for the second quarter of fiscal year 2010 for Cagle's Inc. was $ 0.7 million, or $0.15 per share, compared to a net loss of $5.5 million, or $1.18 per share, for the same quarter of the last fiscal year. Net income for the first six months of fiscal 2010 was $2.0 million, or $0.43 per share, compared with a net loss of $8.5 million, or $1.82 per share, for the first six months of fiscal 2009.
Revenues were $ 87.6 million, up 15.8 %, and pounds sold increased 14.7%, both influenced by a 14-week period in 2010 versus a 13-week period in 2009. For the six-month period, revenues were $165.6 million, up 8.5%, and sales pounds increased 4.9%.
Quoted market prices for the second quarter of fiscal 2010 versus the same period last year fluctuated as boneless breast increased 6%, breast tenders increased 22%, wings increased 49%, drums decreased 14%, leg quarters were 24% lower and whole birds without giblets were 6% less, the company relayed.
For the second quarter of fiscal 2010, cost of sales increased 2.7% compared to the same period last year, from $79.7 million to $81.8 million reflecting the additional week in the period and a 14.7% increase in pounds sold coupled with an 8.6% reduction in the cost of feed. For the first six months of 2010, cost of sales was $153.5 million down 2.4% from fiscal 2009.
Cagle’s said wet weather throughout the Midwest has delayed and possibly damaged what appeared to be a record crop in both corn and soybean meal, resulting in feed prices to increase as the company entered its third quarter.