May 13, 2009
Ridley Q3 profits fall on revenues decline
Animal feed company Ridley Inc. said its third quarter profits fell to US$3.5 million from US$5 million last year due to a sharp drop in revenue.
Revenues in the third quarter dropped to US$140.7 million from US$167.3 million due to lower sales of feed products and lower raw material prices.
Company expenses fell to US$16.2 million in the third quarter from US$18.5 million last year. The lower operating costs reflected reduced expenses following restructuring activities and reduced discretionary spending.
Gross profits were pressured by lower sales volumes that reflected an industry-wide downturn in demand for animal nutrition products, Ridley said.
Livestock and poultry producers in Canada and the US have cut the size of herds and flocks in response to reduced profitability in their own operations following weaker consumer demand and lower meat, milk and egg prices.
However, all reporting segments benefited from cost reduction measures taken in the last several months, the company said.