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Canada - Ridley reports lower than expected second-quarter

Published on 23 February, 2006, Last updated at 05:14 GMT

13th Feb, 2006: WINNIPEG - Animal feed maker Ridley Inc. (TSX:RCL) reported a lower second-quarter profit on cost increases partly related to the Gulf Coast hurricanes in the U.S.

Profit for the three months ended Dec. 31 were $4.8 million US or 34 cents per share, compared with $5.3 million or 39 cents per share for the same period last year. Quarterly sales came in at $138.3 million US, up from $129.9 million the year before.

"Ridley is pleased to report continuing good operating performance for the fiscal 2006 second quarter and for the year to date," CEO Steve VanRoekel stated.

"We dealt with a number of challenges in the quarter, including high costs for energy, difficult transportation logistics because of the hurricanes in the U.S. south-east, supply shortages for some feed ingredients, higher professional fees and legal costs."

Ridley is headquartered in both Mankato, Minn. and Winnipeg and is a co-defendant in proposed class action lawsuits filed in four provinces by cattle farmers.

The farmers are seeking compensation for losses allegedly incurred as a result of international bans on Canadian beef and cattle after a cow in Alberta was diagnosed with mad cow disease in 2003.

On the Toronto Stock Exchange Monday morning, Ridley shares were untraded at $9.75.


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