Meat + Poultry - May 2007 - 16

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Maple Leaf earnings drop, plans R&D center
Net earnings for Maple Leaf Foods Inc., Toronto, for the quarter ended March
31 were C$10,463,000, equal to C$0.08 per share on the common stock, down
39 percent from C$17,272,000, or C$0.14 per share, during the same quarter of
the previous year.
During the quarter, the company spent C$13.1 million on restructuring and
related costs, and C$6.8 million of this related to the reorganization of protein
operations to focus on value-added meats and meals. The other restructuring
costs were the result of closing a poultry facility
in Nova Scotia and a bakery in Langley, B.C.
Sales during the quarter totaled C$1,461,437,000,
up 2 percent from C$1,425,951,000 during the same
quarter of the previous year.
"Our results for the first quarter reflect a solid
improvement, with increased contributions from
both the bakery and the meats businesses," said
Michael McCain, president and CEO. "In the context of the major change activities that we have
under way, the quarterly results reflect our steady
focus on maintaining business stability and performance while aligning our protein operations to a value-added meats and meals strategy."
Sales for the meat products group decreased 3 percent to C$896 million from
C$924 million during the same quarter of the previous year, a result of lower international trading sales. Sales for the agribusiness group increased 4 percent to $208
million from $201 million during the same quarter of the previous year as a result
of higher feed costs when the cost of agricultural commodities increased.
In other news, the company also announced plans to build a food innovation center designed to be used for product development of its global meats and
bakery businesses. Maple Leaf will invest $12 million in the center, which will
include culinary facilities, a foodservice kitchen, sensory and product development space, teaching facility and library.

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Seaboard net income slips in first quarter

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Seaboard Corp., Shawnee Mission, Kan., posted net income of $49,355,000, equal
to $39.13 per share on the common stock, for the first quarter of fiscal 2007, ended March 31. The result compared with net income of $51,540,000, or $40.86 per
share, for the first quarter of fiscal 2006. Sales for the quarter were $729,148,000,
up from $635,573,000 for the same period in 2006.
The company attributed part of its earnings
decline to rising feed costs for the hogs that
supply its pork segment, which reported an
operating income of $20,911,000 for the first
quarter of 2007 compared with $30,100,000 for
2006. Sales for the quarter were $241,647,000
in 2007 compared with $245,294,000 for 2006. The sales decline was the result of
decreased domestic sales volumes of pork products, according to the company.
Operating income of the Commodity Trading and Milling Division rose to
$10,200,000, up narrowly from $10,000,000 in the first quarter of fiscal 2006.
Seaboard officials said the increase reflected increased trading margins on commodities sold in existing markets, offset partially by lower sales and lower margins from certain milling operations.

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Meat + Poultry - May 2007

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