February 23, 2007

 

Maple Leaf announces year-end, Q4 results

 

 

Maple Leaf Foods announced its 2006 year-end and Q4 financial results.

 

In the Q4 of 2006, the company recorded restructuring and other related costs of US$44.9 million (US$34.3 million after tax and minority interest), of which US$29.8 million is related directly to the protein reorganisation, according to a company release.

 

The balance is related to the closure of a poultry facility in Nova Scotia, the closure of a bakery in Langley, B C and the write-off of an investment in a Caribbean flour operation.

 

Sales for the Q4 of US$1.5 billion were consistent with the same period last year, while that for the year fell by 4 percent to US$5.9 billion, primarily due to the impact of currency.

 

Earnings from operations before restructuring and other related costs for the Q4 increased 27 percent to US$65.4 million, while operating earnings before restructuring and other related costs for the year dropped to US$223.9 million.

 

Management believes that this is the most appropriate basis on which to evaluate operating results, as restructuring and other related costs are not representative of continuing operations.