990829 Maple Leaf Profits Soar On Sale Of Franchise UnitsAugust 12, 1999Toronto - Maple Leaf Foods Inc., Canada's largest food processor, posted a record second-quarter profit as its net earnings were boosted by the sale of its franchise operations. The Toronto-based company said its net profit climbed to C$23.3 million, or 24 Canadian cents a share, for the period ended June 30, compared with only C$4.3 million, or 5 Canadian cents a share, in the same period last year. Sales in this quarter hit C$896, up 9% from last year, while operating earnings jumped 88% to C$37.1 million, the company said. For the first six months of the year, Maple Leaf Foods had net income of C$34.1 million, after taking into account a charge of C$82.9 million. The jump in earnings came from the sale of Maple Leaf's franchise operations, which netted the company net proceeds of C$39.3 million, a gain of C$6.6 million. The meat products group -- including the Maple Leaf Pork, Poultry and Consumer Foods divisions -- and the agribusiness group both posted strong results while the company's bakery division had lower-than-expected results, the company said. “We are confident that the bakery product group's financial results will begin to improve in the second half of the year and our objective in the years ahead is to far exceed historical performance,” said Chief Executive Michael McCain in a release. The company, rocked by labor disputes at its processing plants over the past year, said new labor agreements had been ratified at Maple Leaf Pork's Winnipeg and Brandon, Manitoba meat-processing plants. Maple Leaf Foods said it would pay a dividend of 4 Canadian cents per share on September 30 to shareholders of record as of September 17. Shares in the company were trading 25 Canadian cents higher at C$13.75 on the Toronto Stock Exchange on Monday afternoon, compared with a 52-week range of C$18.20 to C$10.55.
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