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WINNIPEG - Livestock feed company Ridley Inc. (TSX:RCL) reported Friday a second-quarter profit of US$4 million, down from a year-earlier $4.9 million as changes in raw material prices squeezed margins.
The profit amounted to 31 cents per share, down from 38 cents in the same period a year earlier.
Gross profits dropped 8.2 per cent "as average unit margins were pressured by the negative effect of declining commodity prices since the start of the current fiscal year on raw materials held in inventory," Ridley said in a statement.
"Margins for feed products may be affected by inventory holding gains or losses realized during periods in which market prices for feed ingredients are rising or falling."
Ridley, which has operations in Canada and the United States and reports in U.S. dollars, said revenues rose 11.3 per cent to $177.2 million as raw material prices moved higher and it continued a shift towards higher value-added products.
While sales volumes were little changed from the prior year period, the company said higher raw material prices "had the effect of increasing average unit selling prices for the company's feed products."
Ridley employs more than 800 people in the United States and Canada making animal nutrition products.
