Golden Oval Eggs shows profit of $2.8 million for quarter
This year’s income was on net sales of $56.6 million, an increase of $3.6 million or 6.8 percent over the third quarter the prior fiscal year.
Golden Oval Eggs, LLC, showed net income of $2.8 million in the third fiscal quarter ended May 31 compared to a loss of $1 million the previous year, according to the Renville, Minn. company’s filing with the U.S. Security and Exchange Commission in early July. Pounds sold were 66.5 million, a 41.4 percent decrease from a year earlier.
The decrease is due to a significant reduction of the Millersburg, Ohio, facility egg supply (15.9 million pounds), which resulted in an impairment charge in the fiscal year ended Aug. 31, 2007. Additional causes of the decline include a decrease in pounds available to sell from production and the Renville, Minn., and Thompson, Iowa, facilities as a result of reductions in flock sizes associated with an increase in the amount of space allotted to each bird in compliance with animal care guidelines promulgated by industry groups (2 million pounds), and a decrease in pounds available to sell as a result of the company exiting certain low margin businesses (9.6 million pounds).
The average selling price per pound sold increased from 54.1 cents to 77.9 cents, a 44 percent increase, as a result of higher selling prices executed in an environment of sharply increased liquid egg markets.Net income for the nine months ended May 31 was a profit of $9.3 million compared to a net loss of $9.4 million the same period a year earlier. Net sales for the nine months were $165.2 million, an increase of $18.1 million, or 12.3 percent over the first nine months of the prior year. The average selling price per pound increased from 47.8 cents to 72.9 cents, or a 52.5 percent increase.