Maple Leaf Foods reports results for Q4 and fiscal year 2010 (Press Release)

Net earnings for Maple Leaf Foods Inc. increased to CAD30.2 million (US$30.8 million) in the fourth quarter compared to CAD21.9 million (US$22.3 million) last year.

"Maple Leaf Foods delivered strong earnings growth in the fourth quarter, despite a sharp increase in raw material prices," said Michael H. McCain, President and CEO. "These results reflect the benefits of cost reductions and price increases intended to help us keep pace with global food inflation, and some early benefits from the initial execution of our strategic plan. We expect the progress we are making in reducing our cost structure, simplifying our product lines, and streamlining our operations will contribute to earnings throughout 2011."

Sales for the fourth quarter of 2010 decreased 9% to CAD1,212.0 million (US$1,235 million) compared to CAD1,324.9 million (US$1,349.8 million) last year, primarily due to the sale of the company's Burlington pork operation during the quarter and the effect of an additional week in the fourth quarter last year. For the full year ended December 31, 2010, sales were CAD4,968.1 million (US$5,061.5 million), compared to CAD5,221.6 million (US$5,319.7 million) in 2009.

Adjusted operating earnings increased to CAD71.4 million (US$72.7 million) compared to CAD57.8 million (US$58.9 million) last year due to improved performance in the Meat Products Group. Full year adjusted operating earnings increased to CAD222.0 million (US$226 million) compared to CAD196.1 million (US$199.8 million) in 2009. Net earnings increased to CAD30.2 million (US$30.8 million) or CAD0.22 basic earnings per share in the fourth quarter compared to net earnings of CAD21.9 million (US$22.3 million) or CAD0.16 basic earnings per share last year.