Exchange Rate Hurts Clearwater's 2007 Sales
Clearwater Seafoods Income Fund on Friday reported a profit of $20.3 million last year, up from $1.8 million in 2006. The Bedford, Nova Scotia-based company posted 2007 sales of $302.7 million, down from $315.7 million in 2006.
The appreciation of the Canadian dollar took "a big bite" out of Clearwater's bottom line, as the United States, Japan and other foreign countries represent 80 percent of the company's sales. The unfavorable exchange rate cut sales by $30.2 million, according to Clearwater.
Canada's largest lobster and scallop processor expects to recover this year after a challenging 2007.
"Clearwater has built its reputation over more than three decades on its ability to deliver a high quality product to its customers, regardless of what external challenges might come its way from time to time," said Clearwater CEO Colin MacDonald in a press release.
"Our performance in mitigating the impacts of these factors and continuing to supply our customers despite them shows that we are well-equipped to return our business to the level of performance we and our customers and investors expect," he added.