Restructuring costs affect Maple Leaf Foods earnings
April 26, 2007
by FoodBusinessNews.net Staff
TORONTO — Net earnings for Maple Leaf Foods Inc. for the quarter ended March 31 were C$10,463,000, equal to C$0.08 per share on the common stock, down 39% from C$17,272,000, or C$0.14 per share, during the same quarter of the previous year.
During the quarter, the company spent C$13.1 million on restructuring and related costs, and C$6.8 million of this related to the reorganization of protein operations to focus on value-added meats and meals. The other restructuring costs were the result of closing a poultry facility in Nova Scotia and a bakery in Langley, B.C.
Sales during the quarter totaled C$1,461,437,000, up 2% from C$1,425,951,000 during the same quarter of the previous year.
"Our results for the first quarter reflect a solid improvement, with increased contributions from both the bakery and the meats businesses," said Michael McCain, president and chief executive officer. "In the context of the major change activities that we have under way, the quarterly results reflect our steady focus on maintaining business stability and performance while aligning our protein operations to a value-added meats and meals strategy. Our plan is on track and we are pleased with execution to date."
Sales for the meat products group decreased 3% to C$896 million from C$924 million during the same quarter of the previous year, a result of lower international trading sales. Sales for the agribusiness group increased 4% to $208 million from $201 million during the same quarter of the previous year as a result of higher feed costs when the cost of agricultural commodities increased. Sales for the bakery products group increased 19% to $358 million from $301 million during the same quarter of the previous year.