Maple Leaf Foods swings to $29M profit

Maple Leaf Foods swung to a profit of $29.8 million in the third quarter, as it nears the end of the restructuring plan it began in 2010.

It's only the second profit in the last 11 quarters for the meat processor, which makes products under the Schneiders, Maple Leaf, Shopsy's, Hygrade and Swift labels. In the third quarter a year ago, it lost $19.8 million.

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Sales from continuing operations totaled $818.9 million in the third quarter, down 0.2 per cent from the previous year, hurt mainly by the agribusiness group, which manages its hog operations.

A lower price for fresh pork and a slight decline in processed meat sales were offset by higher sales of fresh pork and poultry products.

It now faces the challenge of a World Health Organization report that makes the link between processed meats and cancer.

Maple Leaf is also preparing to build the market for more sustainable meat products with new unit Greenfield Natural Meat Co. which will sell from animals raised without any antibiotics, hormones or anything artificial in their feed.

However, investors were disappointed by Maple Leaf's profit margin, which was at 7.1 per cent, below the 10 per cent target the company had set for its restructuring.

Its stock fell 5.5 per cent to $21.24 on Thursday.

Restructuring costs fell about 76 per cent to $3.4 million in the third quarter. The company has been shutting some plants and modernizing others for the past five years.