Canada based Ridley Inc. reported its financial results this week for the second quarter of fiscal 2010, the three months ended December 31, 2009. Ridley Inc. was divested from its Australian parent in 2008.
For the three months ended December 31, 2009, Ridley earned US$5.0 million after income taxes compared to $0.7 million last year. Earnings before interest, taxes and amortization (EBITA) for the second quarter of fiscal 2010 were $10.2 million compared to $7.3 million last year.
Several factors contributed to Ridley's earnings growth in the second quarter of fiscal 2010. Unit margins improved over last year with an improved product mix and the stabilization of raw material prices this year.
Operating cost structures improved as a result of efficiency initiatives undertaken last year. Colder weather with good snow cover throughout much of the trade area was favourable to beef feed volumes.
Ridley Feed Operations (RFO) was the most improved operating segment in the second quarter with an increase in operating income of $5.9 million over last year.
US feed operations accounted for most of this increase while Canadian operations recorded a modest profit this year compared to a loss last year.
Ridley Nutrition Solutions (RNS) performed as expected, increasing operating income by $0.9 million, aided by favourable weather conditions.
Operating income at Ridley Feed Ingredients (RFI) fell $1.1 million from last year due to the absence of raw material pricing gains realized last year.
"Considering the difficult economic environment for livestock and poultry producers, we are satisfied with the results of the second quarter and appreciative of the hard work of our employees in achieving those results, but we remain cautious in our outlook for the remainder of the year", said Steve VanRoekel, President & CEO of Ridley Inc.
"There are indications that producer profitability is improving but animal numbers will remain low in many sectors. While that happens, a strong balance sheet puts us on a solid footing to move forward with new business development initiatives that will position Ridley for future growth", added VanRoekel.