News 267 views last update:7 Aug 2012

Menu Foods on its way to recovering

Menu Foods Income Fund says its pet food business is on the way to recovering from the impact of a series of major recalls, although on a smaller scale.

The pet food maker said it lost $2.2 million or 10.8 cents per unit for the three months ended March 31 compared with a loss of $17.5 million or 91.8 cents per unit a year ago.

Quarterly revenue was $55.6 million, down from $64.5 million. Investors cheered the news as the fund's units traded up 12 cents, or about 9 per cent, to $1.40 on the Toronto Stock Exchange.

"We have made considerable progress and our prospects look better today than at any other time during this past year," president and chief executive Paul Henderson said in a statement. Last month, Menu Foods reached a "comprehensive cross-border agreement in principle" on litigation arising from its tainted pet food scandal.

In March 2007, millions of pet food cans were recalled after they were found to contain Chinese-supplied wheat gluten laced with poisonous melamine . More than 150 brands of pet food were recalled because of the contamination, which killed or sickened an unknown number of animals.

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[Source: The Canadian Press]

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