By Dee-Ann Durbin, Associated Press
The actions of Cal-Maine Foods, the largest producer of American eggs, fell on Tuesday after working hours after the company recognized that it was the subject of a survey by the antitrust division of the United States Ministry of Justice.
Cal-Maine, based in Ridgeland, Mississippi, said that he had received an opinion on the survey on the increases in egg prices last month. Cal-Maine declared that he was cooperating in the investigation.
The actions of the company fell by more than 4% in exchanges after the opening hours.
The prices of eggs have reached record peaks in recent months, largely due to an epidemic of the flu from birds which forced farmers to massacre more than 166 million birds, mainly chickens weighted by eggs.
A dozen grade eggs cost an average of $ 5.90 in American cities in February, up 10.4% compared to a year ago. This overshadowed the January 4.95 record price.
The increases in egg prices have put Cal-Maine, which provides around 20% of the country’s eggs, under a meticulous examination.
On Tuesday, Cal-Maine said that his sales almost doubled for having doubled for $ 1.42 billion in his third tax quarter, which ended on March 1. The company said it was mainly due to the rise in egg prices, which was on average $ 4.06 per dozen during the quarter, against $ 2.25 per dozen a year ago.
Cal-Maine sales have not reached forecasts of $ 1.43 billion in Wall Street, according to analysts interviewed by Fostset.
Cal-Maine said that he had sold a record of 331.4 million dozen eggs in the third quarter, an increase of 10% compared to the same period a year ago.
Cal-Maine said that this had progressed on the attenuation of the effects of the bird flu, in particular by increasing the number of layer chickens and hatching chicks and recovering from the closing of the influenza of the installations in Texas and Kansas. The company said its food costs were also down during the quarter.
Cal-Maine said that his third quarter net income has more than tripled to 508.5 million dollars compared to the same period a year ago. The profit, of $ 10.38 per share, also dropped forecasts by analysts from a share of $ 10.72.
Originally published:
California Daily Newspapers
