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July 26, 2000
Canada Bread Reports Continuing Earnings Increases
Toronto, Ontario – Canada Bread Company, Limited (TSE:CBY) today announced earnings for the second quarter.
The second quarter represents the fourth consecutive quarter of quarterly earnings increases following improvements to the Company’s operations, implemented during 1999.
Sales for the quarter were $139.2 million, compared to $144.7 million last year. The decrease in sales relates primarily to lower sales of fresh products as a result of changes in the customer base and discontinuation of unprofitable products. Improvements in operating margins more than offset these sales decreases. Sales for the year to date of $270.0 million compare to $283.6 last year.
Earnings from operations of $6.3 million for the quarter (1999: $3.9 million) represents a significant increase, arising from operating improvements, including reductions in supply chain and manufacturing waste, sales mix improvements and better pricing controls. For the year to date, earnings from operations of $10.9 million compares to $7.2 million last year.
Net earnings of $3.1 million ($0.14 per share) for the quarter compared to net earnings last year of $2.3 million ($0.11 per share), an improvement of 35%. The improvement in net earnings is not as pronounced as the operating earnings increase due to lower earnings from the Company’s investment in Multi-Marques. For the year to date, net earnings of $5.4 million ($0.25 per share) compare to $4.2 million ($0.19 per share) last year.
Mr. Roger Dickhout, President and Chief Executive Officer, said "We are encouraged by the success of our turnaround efforts to date, and we believe there is still significant room for improvement. We are on track to achieve the reductions in waste and marketing improvements that were outlined at the beginning of the year".
Canada Bread Company, Limited, 68% owned by Maple Leaf Foods Inc., is Canada's leading manufacturer and distributor of bakery products and fresh pasta to the retail and food service business.
For further information please contact:
Roger M. Dickhout
President and Chief Executive Officer
Canada Bread Company, Limited
(416) 622-2040
or
Michael H. Vels
Chief Financial Officer
Canada Bread Company, Limited
(416) 926-2048
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