April 25, 2008

Maple Leaf reports of first quarter loss
 

Maple Leaf Foods has reported of a minor first-quarter loss on Thursday.

Maple Leaf lost CAD 10,000 (US$9,800) compared with a profit of CAD 10.5 million (US$10.3 million) a year ago.

The company has attributed the loss to surging costs for grain used for its bakery and hog businesses. The company said it has increased prices but they were not enough to offset rising costs.

Sales in the first quarter reached CAD 1.2 billion (US$1.2 billion), down 8.6 percent from a year ago.

Wheat prices should fall after the next harvest, and hog prices should increase as producers trim their herds, according to Michael McCain, chief executive of Maple Leaf.

Maple Leaf said it has received CAD 8.4 million of government support payments to assist hog producers.

Maple Leaf is currently undergoing a restructuring to leave its pork export business which has become unprofitable due to the rising Canadian dollar.