Milling & Baking News - March 14, 2006 - 15

F I N A N C I A L

R E S U L T S

Canada Bread earnings up for year
despite difficult fourth quarter
TORONTO - Net earnings at Canada
Bread Co. Ltd. increased 17% in the
fiscal year ended Dec. 31, 2005, even
though expenses dragged down earnings in the fourth quarter.
Fiscal year earnings of C$78.1 million
($68 million), equal to C$3.07 ($2.67) per
share, compared with C$66.6 million, or

Canada Bread earnings from
operations
(in millions)
Fresh Bakery
Frozen Bakery

FY2005
C$82.0
C$29.1

FY2004
C$67.2
C$31.8

4Q2005
C$16.3
C$9.4

4Q2004
C$20.9
C$6.3

Source Canada Bread Co., Ltd.

C$2.62 per share, in the previous fiscal
year. When restructurings costs were included, net earnings were C$74.9 million,
or C$2.95 per share, for the year ended
Dec. 31. Sales of C$1.3 billion were consistent with the previous fiscal year.
In the fourth quarter ended Dec. 31,
2005, net earnings were C$18.7 million,
or C74c per share, which compared with
C$19.3 million, or C76c per share, in the
previous year's fourth quarter. Sales for
the quarter were C$338.9 million, a 3%
drop from C$348.1 million in the previous year's fourth quarter, which had an
additional week of operating results.
"We had a very strong year, as we
continued to benefit from meeting consumer needs with an exciting selection
of value-added, convenient and highly

U.S. sales climb nearly 3% for Bimbo
MEXICO CITY - Grupo Bimbo S.A.
de C.V. said sales in the United States
rose 2.9% in the fiscal year and 2.8%
in the fourth quarter even though the
company continued to rationalize its
product portfolio and client base in
the United States.
Sales in the United States of NP13,545
million ($1,292 million) for the fiscal
year ended Dec. 31, 2005, compared
with NP13,173 million in the previous
fiscal year. Sales of NP3,407 million in
the fourth quarter ended Dec. 31 compared with NP3,310 in the previous
year 's fourth quarter.
A combination of better sales volume in both branded and private label
goods and the impact of price increas-

es in the first half of the year brought
about the sales gains, according to the
company. Double-digit growth in products with Mexican brands continued to
drive sales as did seasonal promotions
like Oroweat's "Winter in Italy."
The U.S. segment reported operating profit of NP75 million for the fiscal year ended Dec. 31 and NP11 million for the fourth quarter. The figures
compared with the previous year 's
losses of NP288 million for the fiscal
year and NP55 million in the fourth
quarter.
EBITDA in the United States was
NP507 million for the year and NP210
million for the fourth quarter, which
compared with the previous year's fig-

Seaboard commodity trading and milling unit
income rises 17% despite sales slump
MERRIAM, KAS. - Operating income
of the Commodity Trading and Milling Division of Seaboard Corp. in the
fiscal year ended Dec. 31, 2005, rose to
$34.4 million, up 17% from $29.3 million in fiscal 2004, the company said in
its annual report released last week.
"Operating income for this segment increased $5.1 million for 2005
compared to 2004," Seaboard said.
"This increase primarily reflects the
positive fluctuation of $9.3 million in
2005 compared to 2004 of marking to
market derivative contracts, and $2.2
million of gains on derivative instruments sold in the sale of the company's third-party commodity trading
16 / Milling & Baking News, March 14, 2006

operations. The increase was also the
result of improved operations for certain consolidated milling locations.
"The increase was partially offset
by the lower sales volume as a result
of the sale discussed above and higher
bad debt expenses in 2005 compared
to 2004."
Seaboard said its 2005 results included commodity derivative gains
of $3 million, which compared with
losses of $5.4 million in 2004 related to
the mark-to-market adjustments.
Division sales totaled $835.7 million,
down 22% from $1,066.5 million the
previous year. The sales decrease primarily reflected the sale of some com-

nutritious bakery products," said Richard Lan, president and chief executive
officer of Canada Bread. "This momentum was followed by a fourth quarter
where we were significantly impacted
by high fuel, energy and other inflationary costs.
"We have implemented price increases to offset these rising costs, and
we are well positioned for the long
term with excellent brands and new
product innovations."
Fresh Bakery segment sales for the
fiscal year were C$951.9 million, a 2.4%
increase from C$929.5 million in the previous year. Earnings from Fresh Bakery
operations increased 22% for the year to
C$82 million from C$67.2 million.
Frozen Bakery segment sales for the
year increased 1% to C$394.6 million
from C$389.4 million. Earnings from operations for the year declined to C$29.1
million from C$31.8 million. MBN

ures of NP57 million for the year and
NP51 million for the fourth quarter.
U.S. sales accounted for 24.1% of
Grupo Bimbo S.A. de C.V.'s companywide sales of NP56,102 million for the
fiscal year ended Dec. 31. The companywide sales were a 6.8% increase
from sales of NP52,574 in the previous
fiscal year. Sales in the fourth quarter
were NP14,791 million, a 7.6% increase
from NP13,742 in the previous year 's
fourth quarter.
Mexico City-based Grupo Bimbo S.A.
de C.V. reported net income of NP2,829
in the fiscal year ended Dec. 31 and
NP886 million in the fourth quarter.
The net income figures compared with
NP2,663 million in the previous fiscal
year and NP755 million in the previous
year's fourth quarter. MBN

ponents of Seaboard's third-party commodity trading operations, partially
offset by an increase in sales for certain
consolidated milling operations from
improved local operating conditions.
Seaboard Corp. posted net earnings of $266,662,000, or $212.20 per
share, for fiscal 2005. The results compare with $168,096,000, or $133.94 per
share, during fiscal 2004. Net sales for
fiscal 2005 were $2,688,894,000, compared with $2,683,980,000 during fiscal 2004.
For the fourth quarter of fiscal 2005,
the company reported net earnings of
$82,811,000, or $65.65 per share, compared with $59,915,000, or $47.74 per
share, during the same period during
fiscal 2004. Net sales for the quarter
during 2005 were $601,826,000. MBN
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Milling & Baking News - March 14, 2006

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