Maple Leaf Foods swings to loss in quarter
October 28, 2010
TORONTO — Maple Leaf Foods sustained a loss in the third quarter, bogged down by charges, restructuring costs and a rise in raw material costs in grains and meat proteins. For the quarter ended Sept. 30, the company had a loss of C$16,078,000 ($15,679,000), which compared with income of C$22,457,000 during the same quarter of the previous year. During the quarter the company had sales of C$1,293,211,000 ($1,261,155,000), nearly equal to C$1,296,597,000 during the same quarter of the previous year.
“The rapid rise in raw material costs in both grains and meat proteins, is the story for 2010,” said Michael H. McCain, president and chief executive officer. "Notwithstanding this significant inflation, we realized our sixth consecutive quarter of earnings growth, continued margin expansion in the protein segment, and double-digit earnings per share improvement over last year. This steady progress reflects our focus on near-term value creation and implementing initiatives across our businesses to increase margins and growth that are expected to deliver significant return to shareholders now and through 2015."
For the nine months ended Sept. 30, the company suffered a loss of C$4,357,000 ($4,249,000), which compared with income of C$30,227,000 during the same period of the previous year. During the nine months the company had sales of C$3,756,084,000 ($3,663,201,000), down 4% from C$3,896,699,000 during the same period of the previous year.