October 28, 2005

Maple Leaf Foods Q3 profits up 13 percent

Canadian pork and food processing giant Maple Leaf Foods reported third quarter profits at C$30.1 million, up 13 percent from C$26.7 million during the same period last year.

The company said there was modest growth in its third quarter results, despite higher energy prices and lower commodity prices for its pork, poultry, feed and rendering businesses.

During the third quarter, Maple Leaf performed well in its fresh bakery and consumer products operations, and achieved lower costs through early merger synergies. The company's savings came from its acquisition of Schneider Foods last year for C$376.7 million.

However, the company's poultry segment gained lower primary processing earnings during the quarter. Rising energy costs also weighed on profits during that period.

Breaking down into segments, Maple Leaf saw a seven percent fall in protein-value sales, a six percent dip in its meat products group sales, and a 12 percent decline in its agribusiness group sales during the quarter.

However, sales rose by four percent for its bakery products group.

Meanwhile, the company expected growth in its ready-to-cook segment and said a new feed mill in Moncton, New Brunswick province, was being commissioned.

Maple Leaf Foods reported sales of C$6.4 billion in 2004.