Canbra Foods Ltd. reported steady sales but reduced net earnings in its preliminary year-end report issued Dec. 1.
The Lethbridge oilseed crusher had sales of $191.2 million in the 12 months ended Sept. 30 compared to $191.5 million in the same period last year, according to the unaudited report.
Its net earnings for the period were $1.51 million or 53 cents a share compared to $7.66 million or $2.69 a share last year.
Like other oilseed crushers, Canbra was hurt by poor margins between relatively strong canola seed prices and low prices for oil and meal. The company’s results were also affected by refinancing costs of $4.7 million, associated with replacing a loan from John Hancock Mutual Life Insurance with one from G.E. Capital Canada Equipment Financing.
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The loan allowed the company to undertake plant improvements and expansion more quickly.
The company’s performance showed improvement in the fourth quarter when net earnings were $2.85 million compared to $1.58 million in the same quarter last year.
Canbra president Larry McNamara said in a news release the better performance in summer was due to lower canola seed prices and aggressive marketing that increased demand. Improved off-shore export sales also improved the profit margin on sales, the release said.
Canbra invested $6.8 million in processing improvements during the 1997 fiscal year. A similar investment will be made in this fiscal year.
Schneider’s earnings increase
Saskatoon newsroom
Preliminary financial results show Schneider Corp. has made a $13 million turnaround in net returns, moving from a loss in 1996 to a profit in 1997.
The pork producer, currently the subject of a hostile takeover bid by Maple Leaf Foods, released preliminary, unaudited financial data on Dec. 3.
A Schneider news release said the company posted net income of $3.1 million or 49 cents a share on sales of $813.4 million in fiscal 1997.
That compares to a loss of $9.8 million or $1.54 a share on sales of $826.1 million last year.
Douglas Dodds, Schneider president and CEO, said the improved finances were due mainly to changes in its operations.
The corporation improved profits in the consumer foods sector, increased production at its expanded Drummondville, Que., bacon facility and benefitted from lower hog prices, he said.
Results in 1996 were affected by a special charge of $7.4 million because of the closure of the company’s hog processing facility in Kitchener, Ont.
Dodds said he expected expansion of its Italian Deli and Fleetwood meat lines and more efficient operations resulting from the opening of its new Winnipeg plant should improve the bottom line in the coming months.
Schneider management has recommended its shareholders reject Maple Leaf’s bid, saying it does not reflect the improved earning ability of the company after restructuring its operating plants and expanding into higher-value processed foods.
