We Still Like the Outlook for These Two

Article Excerpt

MAPLE LEAF FOODS INC. $13 (Toronto symbol MFI; Conservative Growth Portfolio, Consumer sector; SI Rating: Average) is a leading producer of fresh and frozen meat products. The company also supplies animal feeds to farmers, and owns 87.5% of Canada Bread. Overseas customers account for 30% of Maple Leaf’s sales. The high value of the Canadian dollar makes Maple Leaf’s products more expensive in foreign countries, which has hurt its sales. Rising inventories of frozen meat products, particularly in Japan, have cut demand and prices. Consequently, sales in the second quarter of 2006 fell 6.3%, to $1.5 billion from $1.6 billion a year earlier. Earnings fell 36.0%, to $0.16 a share (total $21.2 million) from $0.25 a share ($33.2 million). The meat processing business supplies two-thirds of Maple Leaf’s sales, but just a quarter of its profit. The company now aims to improve this division’s profits with a new restructuring plan. It will probably consolidate some of its hog processing plants, and build a new…

You are trying to access subscriber-only content.

To read this article, you may subscribe or sign in.
If you are already a subscriber, log in here.

If you wish to become a subscriber, click here. Or you may enjoy access to all our publications when you become a Member of Pat McKeough's Inner Circle Pro.