NEW YORK (AP) — Shares of Cal-Maine Foods Inc. slumped more than 10 percent Monday, after the egg producer said its profit dropped because of higher feed prices and costs related to a recent acquisition.
Cal-Maine's net income fell 39 percent in its fiscal second quarter because of higher prices for corn and soybean meal, the main ingredients it uses to feed its chickens. Droughts this summer pushed corn prices to record levels, and while those prices are down from the record levels, they are still up significantly compared to 2011. And the company bought Texas egg producer Maxim Production in November.
Shares of Cal-Maine lost $4.51, or 10.1 percent, to $39.95 in morning trading.
The Jackson, Miss., company made $14.3 million, or 60 cents per share, over the three months ended Dec. 1. A year earlier its net income totaled $23.3 million, or 97 cents per share. Revenue rose 13 percent, to $328.9 million.