News last update:6 Aug 2012

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 plant.

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 million.

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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