Cagle's reports FY loss, due to increased feed costs
Cagle’s Inc. reported a net loss of $600,000, or $(0.12) per share for fiscal year 2011 compared to net income of $2.5 million or $0.55 per share for fiscal year 2010. Net sales increased to $310.1 million, up 1% from fiscal 2010, reflecting an increase in sales pounds of 2.6% and a decrease in sales price of $.0217 per pound. Quoted markets were variable with boneless breast up 6.8%, tenders up 5.3%, wings down 21.7% and leg quarters down 4.0%.
Cost of sales for the fiscal year increased $7.5 million or 2.6% from last year reflecting higher feed cost of $18 per ton or 7.2%. Fourth quarter feed cost rose $82 per ton or 34% above the same quarter of last year, increasing our cost of sales for the fourth quarter by $11.7 million. For fiscal 2011 feed cost increased by $17.7 million or 18.5% versus fiscal 2010 driven by a 75% increase in our cost of corn.