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 TORONTO, Aug. 18 /PRNewswire/ -- Maple Leaf Foods Inc. today announced its results for the second quarter ended June 30, 1993.
 Net earnings from continuing operations for the second quarter were $16.9 million (20 cents per share) compared to $20 million (25 cents per share) in 1992. Net earnings from continuing operations for the six months to date amounted to $27 million (33 cents per share) compared to $32 million (40 cents per share) in 1992.
 Total net earnings for the six months are $27 million (33 cents per share) compared to $35.3 million (44 cents per share) in 1992. The 1992 cumulative total net earnings include the results of the discontinued Edible Oils business and the gain on sale of this business in March 1992.
 Mr. Brent Ballantyne, chief operating officer, said, "The retail sector is slowly showing signs of recovery which should have a positive effect on results in the remainder of this year. The good summer weather is expected to improve volumes in Prepared Meats and the Bakeries. Ongoing product line expansion programs and cost reduction and efficiency initiatives are yielding improvements in several areas. Maple Leaf Foods will continue to undertake profit enhancing initiatives, promote internal growth and invest in operations that will complement and strengthen its core businesses."
 In the Consumer Foods Group, earnings improved from the previous quarter but were below 1992 results. In Prepared Meats, the integration of the SHOPSY'S business is showing the expected positive results, and further profit improving initiatives are being undertaken. The Grocery Products business continues to be affected by highly competitive pricing and volume pressures, however, U.S. sales, new product line introductions such as MICHELINA'S INTERNATIONALS and additional distribution channels, are expected to supplement volumes in the latter half of the year. The Frozen Foods business earnings increased from last year due to restructuring and new product introductions. Food Service results were below expectations and we continue to explore strategic alternatives for this business.
 Milling and Baking Group earnings were lower than last year in both the Flour Milling and Bakery operations. The Flour Milling business continued to be affected by last year's poor wheat crop which has resulted in lower yields and difficult grain trading conditions. In the Bakeries, the improved results at McGavin Foods and Dough Delight did not fully offset the effects of competitive pressure in Ontario and Eastern Canada. Country Style Donuts and Buns Master continued to report good results.
 The Agribusiness Group earnings increased significantly from 1992 for the second consecutive quarter. The Fresh Pork and Poultry businesses continue to report improved earnings over last year reflecting previously completed plant consolidation and production efficiencies. The Shur-Gain business reported better results reflecting the positive effects of improved feed volumes and efficiency initiatives. The Rendering business continued to report satisfactory results while the Poultry hatching and growing businesses also contributed to the improved earnings of the Group.
 Interest income for the quarter is less than 1992 but comparable to last year for the year to date. Interest income has been impacted throughout the year by declining interest rates.
 On June 25, 1993 Corporate Foods Limited purchased the remaining 51 percent interest in Dough Delight, a profitable frozen dough business in which it previously held a 49 percent equity interest. This transaction will contribute positively to the earnings of the Milling and Baking Group in the latter half of the year.
 During the quarter, the Agribusiness Group purchased the remaining 50 percent of Marcel Brard Lte, a Quebec feed company, from its partners as part of the consolidation and improvement of Shur-Gain's Quebec feed business.
 The directors declared a quarterly dividend of 9.5 cents per share, payable Sept. 30, 1993 to shareholders of record on Sept. 10, 1993.
 Brent Ballantyne, a Maple Leaf Foods director and president of the Agribusiness Group, was appointed chief operating officer of Maple Leaf Foods following the resignation of Charles Bowen on June 17, 1993. David Newton, deputy chairman of the board, has been appointed president of the company.
 Maple Leaf Foods is Canada's largest food processing company with operations across Canada, in the United States and Europe. The company's products include fresh and prepared meats, poultry, flours, bakery mixes, fresh and frozen bakery products, seafood and animal feeds. Its products are sold to retail, food service, wholesale, agricultural and industrial customers worldwide.
 Consolidated Statement Of Earnings
 (In thousands of Canadian dollars,
 except per share amounts - Unaudited)
 Periods ended Quarter Six Months
 June 30 1993 1992 1993 1992
 Sales $742,438 678,213 $1,374,815 $1,315,976
 Earnings from
 operations 25,587 28,946 38,822 46,374
 Other income 2,445 3,825 4,682 5,823
 Interest income 1,598 2,609 4,475 4,478
 Earnings before
 income taxes 29,630 35,380 47,979 56,675
 Income taxes 11,260 13,870 18,233 22,053
 Earnings before
 minority interest 18,370 21,510 29,746 34,622
 Minority interest 1,512 1,470 2,699 2,614
 Net earnings from
 operations 16,858 20,040 27,047 32,008
 operations -- -- -- 3,311
 Net earnings $16,858 $20,040 $27,047 $35,319
 Earnings per share
 Net earnings from
 operations $0.20 $0.25 $0.33 $0.40
 Net earnings $0.20 $0.25 $0.33 $0.44
 Dividends per
 share declared $0.095 $0.095 $0.19 $0.19
 Weighted average
 number of shares
 (millions) -- -- 80.9 80.8
 Consolidated Balance Sheets
 (In thousands of Canadian dollars - Unaudited)
 As at June 30 1993 1992
 Current Assets
 Cash and cash equivalents 215,442 279,585
 Accounts Receivable 237,137 243,388
 Inventories 187,599 188,046
 Prepaid expenses 17,011 11,654
 Total 657,189 722,673
 Investments in associated
 companies 54,815 52,735
 Property and equipment 523,314 498,039
 Goodwill 128,141 126,082
 Other assets 42,954 24,247
 Total $1,406,413 $1,423,776
 Current Liabilities
 Accounts payable and accrued
 charges 284,082 311,440
 Income and other taxes
 payable 28,487 40,445
 Current portion of long-term
 debt 2,164 52,286
 Total 314,733 404,171
 Long-term debt 45,363 26,023
 Deferred income taxes 42,498 32,307
 Minority interest 47,171 41,407
 Shareholders' equity
 Share capital 840,403 840,065
 Retained earnings 112,957 79,460
 Unrealized foreign currency
 adjustment 3,288 343
 Total 956,648 919,868
 Total $1,406,413 $1,423,776
 Consolidated Statements Of Changes In Financial Position
 (In thousands of Canadian dollars - Unaudited)
 Six months ended June 30 1993 1992
 Cash provided by (used in)
 Operating activities
 Net earnings from continuing
 operations $27,047 $32,008
 Depreciation and amortization 25,105 24,307
 Minority interest 2,699 2,614
 Deferred income taxes 2,446 4,513
 Undistributed earnings of
 associated companies (396) (359)
 Changes in non-cash working
 capital (47,869) (60,174)
 Other (961) 161
 Total 8,071 3,070
 Financing activities
 Dividends paid (15,364) (15,353)
 Dividends paid to minority
 interest (1,015) (1,036)
 Repayment of long-term debt (950) (14,870)
 Borrowings assumed on
 investment in joint ventures -- 15,234
 Increase in share capital 11 466
 Shares issued by partly owned
 subsidiaries 177 479
 Total (17,141) (15,080)
 Investing activities
 Additions to property
 and equipment (20,103) (25,367)
 Disposals of property and
 equipment 578 1,707
 Purchase of net assets of
 businesses (8,649) (16,301)
 Investments in associated
 and other companies (432) --
 Total (28,606) (39,961)
 Cash used in continuing
 operations (37,676) (51,971)
 Cash provided by
 discontinued operations -- 102,583
 Cash, net of bank indebtedness
 beginning of period 253,118 228,973
 Cash end of period $215,442 $279,585
 As at June 30 1993 1992
 Cash, net of debt $167,915 $201,276
 -0- 8/18/93
 /CONTACT: Lewis Rose, senior vice president and chief financial officer of Maple Leaf Foods, 416-926-2023/

CO: Maple Leaf Foods Inc. ST: Ontario IN: FOD SU: ERN

SM -- NY009 -- 3778 08/18/93 08:51 EDT
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Publication:PR Newswire
Date:Aug 18, 1993

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