October 29, 2010

Maple Leaf Foods' Q3 profits meet expectations

Canadian hog and poultry processor Maple Leaf Foods posted quarterly earnings that met analysts' expectations as an efficiency drive helped offset a surge in grain and protein costs.

The company said higher pricing helped drive a modest increase in sales of its meat products. It reported a third-quarter net loss of CA$16.1 million, or 12 Canadian cents a share, hurt by special charges for restructuring costs and losses on interest-rate swap contracts. Maple Leaf earned CA$22.5 million, or 17 Canadian cents a share, in the same quarter a year ago.

Earnings excluding special items rose to CA$64.5 million, or 23 Canadian cents a share, from CA$63.0 million, or 21 Canadian cents a year ago. Per-share earnings were in line with the average analyst estimate according to Thomson Reuters.

Sales were little changed from a year ago at CA$1.29 billion.

Sales in the meat products group rose 2%, boosted by improved pork markets and higher pricing in prepared meats that offset reduced volumes in fresh pork and prepared meats as consumers adjusted to the new prices.

Agribusiness group sales fell 15%, hurt by lower byproduct volumes despite a stronger performance in hog production.