Vancouver, BC - Fletcher's Fine Foods Ltd., announced its unaudited second quarter results. Both sales and profitability continued to improve despite a labor dispute at its Red Deer, Alberta hog processing facility that affected the last half of the quarter. Sales for the quarter increased to a record $91.8 million as compared to $90.3 million in 1997. Net earnings increased to $1.7 million or $0.26 per share for the quarter as compared to earnings of $1.4 million or $0.25 per share in the second quarter of 1997.
"Our second quarter results validate our strategy of focusing on the continued development of our branded consumer products business. Despite the very difficult operating environment created by the Red Deer labor disruption, our overall profitability continued to improve due to the success of our Prepared Foods Division. Its sales for the quarter increased by 53% to $56.7 million while its gross profit increased by 74% to $12.7 million," said Fred Knoedler, President and CEO. "The Division's gross profit, as a%age of sales, improved to 22.4% as compared to 19.8% in the second quarter of 1997," added Mr. Knoedler.
As previously announced, the labor dispute at Fletcher's Red Deer plant was resolved on July 12, 1998. The new labor agreement is for a six - year term and results in wage rollbacks of up to 35%. In addition, the contract allows employees to select between a one - time bonus payment and maintaining their current wage for two years.
Meat Industry Insights News Service
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