Settlement claims won’t affect Thai Union
By SeafoodSource staff
08 August, 2012
Three of the largest U.S. canned tuna firms have agreed to pay USD 3.3 million to settle civil claims over complaints they have been putting less fish in their cans than the weight stated on their labels.
Chicken of the Sea, owned by Thai Union Frozen Foods, is one of the firms contributing to the settlement. However, according to Bualuang Securities, the settlement will not significantly affect Thailand’s largest canned- and frozen-seafood producer.
The securities firm estimated that Thai Union will incur about USD 1.1 million in one-off expenses related to the settlement to be booked to its third quarter statement. That would squeeze the company’s third-quarter bottom line by only 2 percent.
The average price of West Pacific Ocean skipjack tuna stood at USD 2,240 per metric ton in July, up 1.8 percent month over month and 38 percent year over year and 10 percent since January, a new record.
The seven-month average was USD 2,126 per metric ton, up 26 percent year over year. The sustained high tuna price in July was expected, given the ongoing tightening of tuna supplies.
“We believe that the more stable tuna pricing environment in July will be positive for Thai Union’s third quarter gross margin and earnings,” said Bualuang Securities. “Its gross margin is secured by an enhanced ability to pass through higher tuna costs to customers. We continue to assume a mean tuna price of USD 2,200 per metric ton for 2012, up 25 percent year over year.”
08 August, 2012