May 9, 2008, Vancouver – Sun Gro Horticulture Income Fund said Wednesday it lost $1.4 million, compared with a profit of $4.8 million a year ago, hurt by the weak U.S. dollar and economy.
Sun Gro Horticulture Income Fund said Wednesday it lost $1.4 million,
compared with a profit of $4.8 million a year ago, hurt by the weak
U.S. dollar and economy.
The peat moss grower said the loss amounted to six cents per unit on $60.4 million in revenue for the three months ended March 31. That compared with a profit of 22 cents per unit on $66.7 million in revenue a year ago.
"We are continuing to respond aggressively to current market conditions with rigorous, organization-wide cost reduction measures and by further rationalizing our production facilities,'' president and CEO Mitch Weaver said in a statement.
Sun Gro outsourced baling operations at its Riviere du Loup and Port-Cartier peat plants in Quebec.
The company also said it will outsource distribution operations at its Abbotsford, B.C., depot and plans to close its Niagara, Ont., depot in June 2008.
In its outlook, the company said, excluding the volumes contributed by its recently acquired Florida business, it expects that its overall sales volumes for the balance of 2008 remain will
remain lower than 2007 levels.
Sun Gro is North America's largest producer of sphagnum peat and the largest distributor of peat moss, and peat and bark-based growing media to professional plant growers.
The Canadian Press
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