Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Maple Leaf Slides as Pork Prices Depress Earnings

July 31 (Bloomberg) -- Maple Leaf Foods Inc., 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.

To contact the reporter on this story: Lauren S. Murphy in Toronto at lmurphy48@bloomberg.net

To contact the editor responsible for this story: Robin Ajello at rajello@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.