Saputo Profits Soar on Acquisition

Revenues for the quarter amounted to $1.497 billion, a decrease of $20.2 million or 1.3% in comparison to $1.517 billion for the corresponding quarter last fiscal year.

3 Feb 2010 --- Saputo has reported that net earnings for the third quarter totalled $104.3 million, an increase of $46.5 million or 80.4% compared to $57.8 million for the same quarter last fiscal year.

Earnings before interest, income taxes, depreciation and amortization (EBITDA1) amounted to $183.5 million, an increase of $57.8 million or 46.0% in comparison to $125.7 million for the same quarter last fiscal year.

Revenues for the quarter amounted to $1.497 billion, a decrease of $20.2 million or 1.3% in comparison to $1.517 billion for the corresponding quarter last fiscal year.

Basic earnings per share (EPS) and diluted EPS were $0.50 for the quarter, as compared to $0.28 for the corresponding quarter last fiscal year.

The acquired activities of Neilson Dairy (Neilson), completed on December 1, 2008, contributed to the quarter’s revenues and EBITDA as compared to the third quarter of fiscal 2009.

In the United States (US), the average block market per pound of cheese declined by US$0.27 compared to the same period last fiscal year, placing downward pressure on revenues and EBITDA by negatively affecting the absorption of fixed costs.

There was a favourable realization of inventories and a less favourable relationship between the average block market per pound of cheese and the cost of milk as raw material compared to the same quarter last fiscal year.

EBITDA for the third quarter of last fiscal year included a rationalization charge of $2.0 million for the closure of our Hinesburg, Vermont manufacturing facility and inventory write-downs in the USA and CEA (Canada, Europe and Argentina) Dairy Products Sectors totalling $18.5 million, as compared to a $2.1 million inventory write-down this current quarter, positively impacting results as compared to the same quarter last fiscal year.

The Board of Directors approved a dividend of $0.145 per share payable on March 19, 2010 to common shareholders of record on March 8, 2010.