Ridley reports profits fall due to plant closure and warm weather
Canadian animal feed maker Ridley Inc. says its
second-quarter net profit fell to US$2.8 million from US$4.8 million as the
Winnipeg company took a charge to close its Lacombe, Alberta
Ridley reported this week it earned 20 cents a share
for the three months ended Dec. 31, the second quarter of the company's 2007
fiscal year. That compared with a profit of 34 cents a share for the same period
in 2005. Three-month revenues rose to US$144 million from $138.3
According to Steve VanRoekel, Ridley's president and chief
executive, the company's second quarter operating performance suffered from
extraordinarily warm weather throughout most of North America in December and by
reduced sales volumes in Canada. As well, the company took a one-time impairment
charge to close its Lacombe plant.
"The condition of the Lacombe facility
no longer met our standards, and was becoming too expensive to maintain and
operate," said VanRoekel. "Rather than undergo extensive renovations, we chose
to expand production capacity at our facility in Linden, Alberta and relocate
some volume there. We expect to see a modest improvement in ongoing earnings
once the transition to Linden is complete."
Ridley has headquarters in
Winnipeg and Mankato, Minnesota and is one of North America's leading commercial
animal nutrition companies. Ridley Inc is a 69% subsidiary from Ridley
Corporation Ltd in Australia, which is the largest feed
manufacturer down under.
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