Listeria cost Maple Leaf Foods $43M

McCain said today he estimates the outbreak and resulting recall of dozens of Maple Leaf products cost the company between $25 million and $30 million directly related to the recall, plus another $14 million in lost sales.

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In its financial report, Maple Leaf reported a summer-quarter loss of $12.9 million, dragged down by $42.9 million in recall, restructuring and other costs related to the listeria contamination of products from its Toronto packaged-meat plant.

The quarterly loss, worth 10 cents per share, compares with a year-earlier profit of $220.4 million or $1.67 per share, which included a $218.7-million gain on discontinued operations.

Sales edged up to $1.34 billion, from $1.30 billion a year ago, but the big Toronto-based food processor also saw most of its operating profits sliced away in its troubled meat products group.

Operating earnings in the division plunged 94 per cent to about $800,000 from $13.6 million last year as the company pulled more than 200 meat products from store shelves after the listeria contamination at the plant.