Connors Bros. Profit Drops Due to Meat Recall
Connors Bros. Income Fund of Markham, Ontario, yesterday reported a $71.1 million fourth-quarter net loss related to a recall in its canned-meat business.
Connors Bros., whose brands include Bumble Bee, Clover Leaf and Brunswick fish products and Castleberry's and Sweet Sue meat and chicken products, said its fourth-quarter revenues declined 4.8 percent to $227.9 million. The net loss was worth $1.41 per unit.
The company reported $82.2 million in costs and write downs related to a July recall of canned chili and other products from its Castleberryâ??s plant in Augusta, Ga.
However, the company said its pre-tax operating profit rose 3.9 percent from the year prior to $25.2 million, "as strong seafood performance offset lost sales and profit from the meats business," CEO Chris Lischewski said in a press release.
Full-year 2007 revenue was $927.5 million, compared with $938.2 million in 2006.