Connors Bros. income fund, a giant in the sardine business and also recently the new owner of Bumble Bee Seafood, says its profit slipped to $16.7 million as a strong Canadian dollar cut into revenues.
The world's largest producer of canned sardines said Wednesday it earned $1.07 per trust unit in 2003, compared with a profit of $18.2 million or $1.17 a unit in 2002. Revenue fell to $140 million from $155.1 million.
Connors said revenue in 2003 from sales to the U.S. market totaled $69.6 million, down from $80.5 million in 2002 with about $8.2 million of the fall due to the stronger loonie.
Last month, Connors announced it was merging with U.S. tuna processor Bumble Bee Holdings LP to create "a diversified North American seafood powerhouse."
New Brunswick-based Connors (TSX:CBF.UN) will own a majority of the combined company in a transaction that values San Diego-based Bumble Bee at $385 million US. This deal took place in February 2004 and therefore has had no effects on the 2003 results in any way.
Bumble Bee produces canned tuna, salmon and specialty seafood under brands, including Clover Leaf and Bumble Bee. It has processing plants in California and Puerto Rico and is the largest buyer of canned salmon from British Columbia and Alaska.
Connors, producer of the Brunswick and Beach Cliff sardine brands, has processing plants in New Brunswick and Maine, as well as its own fishing fleet.
Units in the trust fell 34 cents to $17.35 in trading on the Toronto stock market.