Wednesday, November 4th, 2009
Peat moss producer Sun Gro earns $3.7M in Q3, reversing year-earlier loss
VANCOUVER, B.C. - Sun Gro Horticulture Income Fund (TSX:GRO.UN) said Wednesday it earned $3.7 million in the third quarter, reversing a year-earlier loss despite lower sales volumes.
The peat moss producer's profit amounted to 16 cents per unit compared with a loss of $2.5 million or 11 cents per unit in the third quarter of 2008.
Revenue was $45.6 million, down slightly from $45.9 million a year ago.
Sun Gro said the earnings improvement was driven by a combination of factors, including a stronger U.S. dollar, lower energy prices and transportation costs and improved peat harvest conditions.
"Although the business environment has not notably improved, we have sustained our performance improvement trend and made a strong start to the seasonally slower second half of the year," stated president and CEO Mitch Weaver.
"We remain focused on reducing debt, driving greater operating efficiency by strengthening our infrastructure, and strategically growing our business. We are making good progress."
However, Sun Gro said it doesn't expected any significant growth in its sales "until there is a substantial improvement in general economic conditions and a resurgence of U.S. new home construction activity."
Units in the fund were unchanged at $3.50 in Wednesday trading on the Toronto Stock Exchange.
