Maple Leaf Foods Inc. (MFI), the Canadian producer of foods from hamburgers to frozen pasta, fell the most in more than two years after second-quarter earnings missed analysts’ estimates due to global pork and raw material volatility.
Maple Leaf declined 7.4 percent to C$14.35 at the close in Toronto, the biggest drop since November 2010. The shares have jumped 20 percent this year, compared with a 0.4 percent gain in the Standard and Poor’s/TSX Composite Index.
The Toronto-based company posted per-share profit, excluding one-time items, of 2 cents, trailing the 15-cent average of 15 estimates compiled by Bloomberg. Sales declined 3.7 percent to C$1.21 billion ($1.18 billion).
“Hog production returns, global pork markets and volatile raw-material markets all contributed to a material year-over-year earnings decline,” Michael H. McCain, chief executive officer of Maple Leaf, said in a statement.
Maple Leaf is in the midst of a five-year overhaul, which began in 2010, that includes closing eight plants and cutting 1,550 jobs by 2014.
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