Maple Leaf Foods Inc. continues to lose money, but president
and chief executive officer Michael McCain continues to be optimistic that
things are going well.
The loss for the second quarter was $39.5 million compared
with $38.4 million for the parts of the business that were not sold or closed.
The company has sold its stake in Canada Bread to Bimbo
Bakery of Mexico and has begun to close some meat-processing plants in
preparation for full-scale operations at a new plant at Hamilton.
McCain blamed the cost of running two supply lines for the
losses, apparently referring to the closing months of business at the Schneider
plant in Kitchener. That plant, which once employed more than 2,000 people, is
scheduled to close before the end of the year.
McCain said the Hamilton plant is in the process of being
commissioned.
The company announced an “adjusted earnings loss” of $12.1 million compared with $32.3
million for the second quarter last year, but in the detailed report, says the
losses from ongoing operations were $39.5 million this year and $38.4 million
last year.
The losses so far this year total $164.2 million compared
with $69 million last year.
The company has increased product prices to offset higher
raw material costs, so its revenues increased even though volumes sold
declined.
Sales totals for the second quarter were $831.8 million this
year compared with $759.3 million last year.
