Maple Leaf income up sharply in year

by Staff
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TORONTO — Despite input costs and restructuring charges that led to lower fourth-quarter results, earnings for Maple Leaf Foods, Inc. were up 145% during 2011.

For the year ended Dec. 31, 2011, the company had earnings of C$87,331,000 ($87,656,403), equal to C$0.59 per share on the common stock, which compared with income of C$35,613,000, or C$0.22 per share, during fiscal 2010. Sales for the year were C$4,893,624,000 ($4,911,444,985), down 1% from C$4,968,119,000 during fiscal 2010.

“We are very pleased with our results for the year and we remain on track to deliver our earnings and margin growth for 2012 through 2015,” said Michael H. McCain, president and chief executive officer. “We realized strong earnings growth for the year in our protein operations, which contributed to a 40% rise in our adjusted earnings per share. However, we experienced a challenging fourth quarter as a result of unseasonably strong raw material costs, which impacted continued margin growth in prepared meats. We also experienced short-term higher operating costs in our bakery business. These factors, combined with lower pork and poultry processing margins from year-ago highs, contributed to lower relative performance in the fourth quarter. We are now actively passing through pricing to help mitigate these challenges and we remain committed to executing our value creation initiatives.”

Adjusted operating earnings for the Meat Products group during the year were C$95,987,000 ($96,322,752), up 18% from C$81,218,000 during the previous year. Sales for the segment were C$3,039,460,000, down 4% from C$3,181,134,000.

The Bakery Products Group had adjusted operating earnings of C$86,294,000, down 9% from C$94,399,000 during the previous year. Sales for the segment were C$1,594,520,000, up slightly from C$1,587,487,000.

For the fourth quarter ended Dec. 31, the company had earnings of C$9,195,000 ($9,227,163), or C$0.06 per share, down 70% from C$30,643,000, or C$0.21 per share, during the same quarter of the previous year. Sales for the quarter were C$1,245,328,000 ($1,249,347,320), up 3% from C$1,212,035,000 during the same quarter of the previous year.

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