Ridley Incorporated’s third quarter financial results from North American operations improved, but its pig operation was hurt by foot-and-mouth disease problems in Great Britain.
Ridley’s pig genetics company, Cotswold, recorded a $2 million loss before interest and taxes for the quarter and a nine month loss of $4.9 million.
“Although Cotswold benefited from the stronger markets for breeding stock and commercial hogs, its results were adversely impacted both by significant start-up costs to establish its own marketing capabilities in the U.S. and the effects of the foot-and-mouth disease outbreak in the U.K.,” said Robert Gallaway, president and chief executive officer.
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Overall, the feed and hog com-pany’s net earnings were $4 million, compared with $5.6 million last year.
But last year’s third quarter earning were greatly affected by unusual items including claims settlements received from suppliers, a writedown on an investment, and costs associated with a feed mill closure.
Earnings before interest, taxes, depreciation, and amortization increased 19.8 percent to $12.2 million from $10.2 million earned in the 2000 third quarter, adjusted to exclude the effects of non-recurring items. EBITDA is a key business measurement.
Ridley’s Canadian operations reported third quarter earnings before interest and income taxes, or EBIT, of $2.4 million, the same amount as last year. The nine- month EBIT was $9 million compared to $4.6 million last year.
The company is getting out of its Quality Swine Systems commercial hog production business.
“To that end, we have given cancellation notice to contract producers representing 60 percent of the finishing capacity and 20 percent of the nursery capacity,” said Gallaway.
The company expects to be “substantially out of the business by the end of March 2002.”
American operations showed a nine month EBIT of $31.1 million, compared to $18.6 million last year.
The beef industry is doing well and the company is benefiting from a smooth integration of Wayne Feeds into its Hubbard Feeds business, the company said.
