April 28, 2011 / 1:38 PM / in 7 years

UPDATE 1-Canada Bread posts Q1 loss on restructuring charge

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April 28 (Reuters) - Canada Bread posted a first-quarter loss, hurt mainly by a C$20.1 million pre-tax restructuring cost to shut a fresh bakery facility in March.

Adjusted operating earnings in the quarter fell 19 percent to C$16.7 million as the increase in prices to offset rising costs came at the end of the quarter and volumes in the North American frozen bakery business fell.

However, the Toronto-based company said it expects the price increases to strengthen margins and it expects its U.K. bakery business to continue improving through the rest of the year.

The company posted a first-quarter net loss of C$966,000, or 4 Canadian cents per share.

It had earned C$13.0 million, or 51 Canadian cents per share, a year ago.

The company, 90 percent owned by Maple Leaf Foods Inc , said adjusted earnings were flat at 56 Canadian cents per share.

Sales for the quarter fell marginally to C$371.8 million from C$381.9 million, last year, mainly on the sale of its fresh sandwich product line in February.

Analysts on an average were expecting the company to earn 55 Canadian cents on revenue of C$257.2 million, according to Thomson Reuters I/B/E/S.

Shares of the company closed at C$46.50 on Wednesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Joyjeet Das)

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