Cal-Maine credits acquisitions, efficiencies

Cal-Maine credits acquisitions, efficiencies

- Increased sales volume and selling prices offset higher feed costs. - Acquisitions of Pilgrim's and Maxim egg operations contributed to increased volume.

CAL-MAINE Foods Inc., the largest commercial egg producer in the U.S., has reported stronger earnings for its fiscal 2013 third quarter and first nine months despite feed costs that were considerably higher than the year before.

The company noted that feed costs for the quarter (December 2012 through February) were 22% higher than during its fiscal 2012 third quarter, but it credited increased sales volume and selling prices, as well as a continued focus on efficient operations, for bucking the feed cost headwinds.

Cal-Maine said the increased volume was due in large part to its acquisitions of the egg operations of Pilgrim's Pride Corp. and Maxim Production Co. last year (Feedstuffs, Aug. 20 and Nov. 26, 2012).

The company said both acquisitions are being integrated into its system and are providing additional capacity, market opportunities and operating synergies.

Cal-Maine chair, chief executive officer and president Dolph Baker said specialty egg sales for nutritionally enhanced, organic, cage-free and other specialty eggs continued to demonstrate steady growth in the third quarter, accounting for 16.7% of total dozens of eggs sold and 23.6% of total egg sales.

"We are focused on identifying more opportunities to market and sell specialty eggs and meet the increasing demand (for them) from our customers," he said. "We believe performance of specialty eggs will be a key driver of our future growth."

Cal-Maine's financial results are shown in the Tables.

Cal-Maine also announced that its board of directors has authorized a cash dividend of 42.3 cents per share on its common and Class A common stock, payable May 16 to holders of record May 1.

Cal-Maine, headquartered in Jackson, Miss., sells the majority of its eggs in 29 states across the mid-Atlantic, southeastern, southwestern and midwestern regions of the U.S. The company had fiscal 2012 sales totaling $1.113 billion.

 

1. Cal-Maine earnings and sales*

 

-Third quarter-

-Nine months-

 

2013

2012

2013

2012

Sales (million $)

360.373

303.660

962.171

837.871

Earnings (million $)

30.551

26.102

54.256

52.479

Earnings per share ($)

1.27

1.09

2.26

2.19

 

2. Cal-Maine operating statistics*

 

-Third quarter-

-Nine months-

 

2013

2012

2013

2012

Eggs produced (mil. doz.)

185.632

166.109

523.383

491.785

Eggs sold (mil. doz.)**

257.051

229.235

705.176

655.463

Avg. selling price ($/doz.)

1.351

1.275

1.308

1.224

Feed costs (cents/doz.)

54.7

44.9

54.5

46.6

% specialty eggs sales volume

16.7

16.4

16.8

16.3

% specialty eggs sales revenue

23.6

23.4

23.8

23.4

*For the quarters ended March 2, 2013, and Feb. 25, 2012.

**Includes eggs purchased from other producers.

 

Volume:85 Issue:14

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