Weak food service sales hurt Cal-Main 2Q results

AP News
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Posted: Dec 28, 2009 8:16 AM

Cal-Maine Foods Inc., which produces and sells eggs, said Monday its fiscal second-quarter profit fell 41 percent as food service and restaurant sales remained weak.

Profit for the quarter ended Nov. 28 fell to $16.1 million, or 67 cents per share, from $27.2 million, or $1.14 per share, last year. Analysts polled by Thomson Reuters, on average, predicted a smaller profit of 66 cents per share.

Revenue fell 4 percent to $229.2 million from $238.3 million last year. Analysts expected revenue of $233.7 million.

CEO Fred Adams Jr. said supply and demand for eggs were well balanced and food costs were down.

"However, food service and restaurant sales continued to be slow, reflecting economic trends, and egg product sales were down about 2 percent," he said.