Feed company Ridley Inc. had reduced sales and operating profits in fiscal 2004, but net earnings for the year improved because it freed itself from losses resulting from the closure of its hog genetics company.
Ridley, which owns Feed-Rite and other feed companies in Canada and the United States, posted net earnings of $10.9 million in the year ending June 30, up from $10.4 million in 2003.
However, net earnings from continuing operations fell to $12.4 million, down from $23.3 million the year before.
Ridley president Bob Gallaway blamed reduced sales on BSE’s ongoing impact on the cattle industry, fewer animals on feed and mostly weak hog prices. Sharply higher feed costs late in the fiscal year also cut into profits. As well, a U.S. drought assistance program in 2003 that helped increase sales that year was not continued in 2004.
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“Without a drought assistance program in fiscal 2004, and combined with improved moisture conditions and a mild winter resulting in better grazing for cattle, the U.S. division recorded sharply reduced feed sales volumes,” the company said in a release.
Although operating earnings were weaker, the company’s net profit picture improved because losses associated with its Cotswold Swine Genetics operation were much lower.
Ridley sold Cotswold in July 2003 and recorded a $13 million loss in the 2003 fiscal year. The loss associated with Cotswold in 2004 was only $1.5 million.
