Cagle's reports net sales up 2% in third quarter compared to prior year
Net income for fiscal 2011 so far at $4.4 million
Cagle's Inc. reported that net sales were up 2.2% for the third quarter ending Jan. 1 compared to the previous year's third quarter, although the company had a net loss of $2.2 million on net sales of $72 million.
Net sales reflected an 11.9% increase in pounds sold and a reduction in sales price per pound of $0.069. Quoted market prices of products for the third quarter of fiscal 2011 versus the same period last year were mixed: boneless breast increased 4.8%, tenders decreased 4.5%, wings decreased 20.8%, drums decreased 22.8%, leg quarters increased 7.7% and whole birds without giblets were quoted 26.2% higher.
According to Cagle's, feed ingredient prices continue to challenge the company, which experienced a 30% increase in the price of corn coupled with a 22% increase in the price of soybean meal since the start of the third quarter.
For the first 39 weeks of fiscal 2011, Cagle's reported net income of $4.4 million on net sales of $233.7 million. For the comparable period of fiscal 2010, which was a forty week period, the company reported net income of $1.6 million on net sales of $236 million.