CGL.A Cagles,

ATLANTA, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Cagle's, Inc. (Amex: CGL.A) today reported net income of $3.1 million or $0.67 per share, on net sales of $83.2 million for the second quarter ended October 2, 2010. For the comparable quarter a year ago, which was a fourteen week period, the company reported net income of $0.7 million, or $0.15 per share, on net sales of $87.6 million.

Net sales for the second quarter were up 2.3% or $.035 per pound, versus the fourteen week prior year second quarter adjusted to reflect a thirteen week period, as we experienced a 19% increase in boneless breast and tenders production reflecting the successful transition of our Pine Mountain Valley plant to a deboning facility. Quoted market prices of products for the second quarter of fiscal 2011 versus the same period last year were mixed as boneless breast and tenders increased 23.9%, wings decreased 13.0%, drums decreased 21.0%, leg quarters were 7.5% lower, and whole birds without giblets were quoted 30.7% higher.

Cost of sales for the second quarter of fiscal 2011 of $73.5 decreased 3.2% as compared to the fourteen week prior year second quarter adjusted to reflect a thirteen week period. Operational efficiencies improved supported by larger bird size at our Pine Mountain facility with a second quarter production volume increase of 5.5% and a year to date increase of 7.5% both as compared to adjusted 13 week and 26 week periods of fiscal 2010. Feed ingredient prices for broilers processed in the second quarter of fiscal 2011, which represented 38% of the total cost of sales, decreased 6.0% as compared to the second quarter of fiscal 2010.

As we continue the ongoing transformation of our Pine Mountain Valley operation we are focusing on yield improvements and cost control to maximize our margins as well as providing higher utilization of assets already in place. Over the next two years we expect to more than double our Pine Mountain production, when compared to volumes reflected in fiscal 2010 results, providing operational efficiencies throughout all phases of our company.  Our Collinsville facility continues to expand its value added customer base in the fast food and grocery deli business and is running at better than 100% capacity.

With reduced availability of competing protein we are cautiously optimistic for the remainder of this fiscal year. Recent increases of grain cost will stress margins for all protein producers but chicken remains an excellent cost effective choice for consumers.

For the first two quarters of fiscal 2011, the company reported net income of $6.6 million or $1.42 per share, on net sales of $161.7 million. For the comparable period of fiscal 2010, which was a twenty seven week period, the company reported net income of $2.0 million, or $0.43 per share, on net sales of $165.6 million.

This press release contains forward-looking statements based on management's current views and assumptions. Actual results and events may differ. For a discussion of these matters, please refer to the "Forward-Looking Statements" in Item 7 of the Company's 2010 Annual Report on Form 10-K and please refer to the cautionary statement found in Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of the Quarterly Report on Form 10-Q for the Company's first quarter ended July 3, 2010.

SOURCE Cagle's, Inc.