February 13, 2008

Ridley reports Q2 loss on US$6-million mad cow settlement

Ridley reported a net earnings loss of US$2.8 million for the second quarter ending December 31, 2007 blamed on a US$ 6-million settlement in a class action lawsuit.

For the three months ended December 31, 2007, net earnings loss was US$8.5 million against US$10.1 million in the previous year.

On February 5, 2008, Ridley has announced that it reached a settlement agreement with the plaintiffs in the mad cow class action lawsuits.

Under the settlement, Ridley will pay US$6 million into a plaintiffs' settlement trust fund.

Steve VanRoekel, President and CEO of Ridley Inc., said after the settlement, the company performed well in the second quarter despite an increasingly difficult livestock production economy. This was attributed to good results from the US side of Ridley Feed Operations and a strong earnings increase from Ridley Feed Ingredients.

Gross profit results US-based Ridley Nutritional Solutions were close to last year, but continue to be below expectations, due primarily to the exceptional drought and poor pasture conditions in the south-eastern US that continue to depress block supplement volumes, VanRoekel explained.

Ridley Inc. manufactures and markets a broad range of complete feed rations, nutritional supplements, feeding blocks and vitamin/mineral premixes in Canada and the US.