Smaller volumes bog down Maple Leaf income

by Staff
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TORONTO — Smaller volumes at Maple Leaf Foods, Inc. contributed to a 93% decrease in earnings during the first quarter.

For the quarter ended March 31, the company had earnings of C$763,000 ($771,551), which compared with earnings of C$10,547,000 during the same quarter of the previous year. Sales for the quarter were C$1,160,823,000 ($1,174,115,000), up 1% from C$1,147,942,000 during the same quarter of the previous year.

“Our first-quarter results were challenged, as expected, due primarily to weak fresh bakery volumes, an issue affecting the entire industry,” said Michael H. McCain, president and chief executive officer. “We are addressing this challenge directly and expect improved results through the remainder of 2012. Conversely, we are very pleased with the results in our Protein Group, particularly considering the significant decline in commodity industry pork processor margins. While the bakery business had a slow start, we expect to reach our EBITDA margin target run rate later this year.”

The Protein Group had adjusted operating earnings of C$41,165,000 ($41,636,497), up 1% from C$40,650,000 during the same quarter of the previous year. The segment had sales of C$790,833,000 ($799,891,070), up 2% from C$775,534,000 during the same quarter of the previous year.

The Bakery Products Group had operating earnings of C$3,265,000 ($3,302,310), down 73% from C$12,188,000 during the same quarter of the previous year. Sales for the segment were C$369,990,000 ($374,217,977), down 1% from C$372,408,000.

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