010472 Maple Leaf Posts Profit on Rising Sales

Toronto - Maple Leaf Foods Inc. reported a near 80% rise in profits -- although still below analyst expectations -- as meat sales at a division not included before and cost-cutting measures boosted both the top and bottom lines.

The food processing company posted a profit of C$9.7 million ($6.3 million), or 9 Canadian cents per share, compared with a profit of C$5.5 million, or 5 Canadian cents a share, in the previous year's quarter. Sales rose 29% to a little over C$1 billion from C$818.3 million.

One analyst polled by Thomson Financial/First Call had forecast earnings of 18 Canadian cents a share.

Canada Bread Co. Ltd., of which Maple Leaf owns 68%, said its first-quarter profits grew 45% to C$3.32 million from C$2.29 million because of improvements in operations and lower interest expenses.

Maple Leaf's shares have risen about 27% so far this year, sharply outperforming the Toronto Stock Exchange 300 composite index, which has fallen about 11% in the same period.

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