February 22, 2008

Maple Leaf records fourth quarter loss in 2007 but remains optimistic for 2008
 

Maple Leaf Foods has reported a loss of US$22 million in its fourth quarter of 2007, but the company's management has stated its confidence in bouncing back.

Sales have also dropped by 6 percent to US$1.25 billion, from US$1.34 billion in the same period a year ago.

Michael H. McCain, president and CEO of Maple Leaf, said while they are well-prepared for an ongoing rise in input costs in 2008, the company may encounter temporary instability as they attempt to match prices with costs increase, and which also depends on the extent of the changes.

However, the company is also making significant progress in the restructuring of their protein operations that will increase profitability and reduce currency and commodity exposure for the long-term, said McCain.

Sales of hog operations in Ontario and Alberta will also contribute to increased profitability, he added.

The company's meat products group earned US$42 million, a result helped by improved earnings from its fresh pork business.