Continuing losses at its Brandon plant and tight profit margins in the pork business squeezed profits at Maple Leaf Foods last year.
“Our difficult financial results in 2000 relates almost exclusively to a single factor, being the start-up issues surrounding our Brandon fresh pork facility,” said Michael McCain, president and chief executive officer.
“We expect Brandon to become profitable during 2001.”
The company reported year end net earnings for 2000 of $36.8 million, or 34 cents per share, compared to $77.2 million or 77 cents per share the previous year.
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Full year sales of $3.9 billion were up 12 percent from $3.5 billion last year.
The company said in a News release
news that despite improvements at the Brandon plant, the losses continued.
The meat products group, which includes Brandon, lost $11.2 million over the year, compared to earnings of $66.5 million the year before.
“Quarterly start-up costs and operating losses this year at the Brandon pork facility totaling $58 million have been reduced from $20 million in the first quarter to $6.9 million in the fourth quarter,” the company said.
“Solid operating improvements continued to be achieved at the Brandon facility due, in part, to further progress in building the size and skill base of its core employee group.”
The company expects to reach full one-shift capacity this year.
The agribusiness group, which includes feed and hog production, saw sales increase 18 percent to $846 million.
Full year earnings from operations were up 14 percent to $80.9 million.
The company said there were solid results from Shur-Gain’s animal nutrition operations, benefits from the company’s vertical co-ordination pork value chain strategy and inclusion of the results of Landmark Feeds and Elite Swine, acquired in the fourth quarter of 1999.
There were improved operating earnings from the bakery products group. It is heavily advertising the launch of a new line of its Dempster’s breads.
