Maple Leaf Foods continues to post losses, sales drop after Canada Bread sale

TORONTO — A slimmed-down Maple leaf Foods Inc. (TSX:MFI) is reporting losses at its continuing operations during the third quarter as it closes older plants, including one in New Brunswick, and shifts production to a newer operation in southern Ontario.

Maple Leaf’s net loss was $26.7 million or 19 cents per share, which was more than the $24.5 million or 18 cents per share in last year’s third quarter.

On an adjusted basis, there was an improvement year-over-year with a loss of 13 cents per share, compared with 19 cents per share a year earlier but missed analyst estimates.

The Toronto-based company, which has sold its Canada Bread bakery division, had $830 million of sales from continuing operations in the latest quarter.

That compared to $757.8 million of sales in the third quarter of 2013, when Maple Leaf also had $461.9 million of sales from operations that are now listed as discontinued.

Maple Leaf Foods’ revenue was slightly ahead of the $814-million anticipated by analysts but the adjusted loss was 15 cents bigger than the estimated loss of four cents per share, according to Thomson Reuters data.

The third quarter’s net loss included $14.3 milion or seven cents per share of expenses related to restructuring, up from $11.4 million or six cents per share a year earlier.

“We continue to make important advances towards our strategic goals,” Maple Leaf Foods president Michael H. McCain said.

McCain said that Maple Leaf is continuing to transfer production to its new plant in Hamilton from other locations.

The company said Thursday that production has ended in Moncton, N.B., but three more sites remain to be closed.

“While the ongoing cost of duplicate supply chains and start-ups continues to be material, we are achieving milestones every quarter.”