LUNENBURG, N.S. — High Liner Foods Inc. says it has let go 14 per cent of its salaried employees as part of cost-cutting measures following a disappointing third quarter.
The frozen seafood processor says it is executing against five critical initiatives, including the organizational restructuring, that will achieve more than US$10 million net annualized run rate cost savings within the next 12 to 15 months.
A one time charge of US$4.5 million, including US$3.3 million in the fourth quarter, will be associated with the latest restructuring.
The company is also taking steps to simplify its business, implement one integrated supply chain, fully extract value and synergies from its Rubicon acquisition, and invest in product innovation and other things to return to profitable organic growth by 2020.
High Liner, which keeps its books in U.S. dollars, reported a $44 million gross profit for the third quarter ending September 29, down $4.3 million from $48.3 million in the same quarter the previous year.
It says its net income fell $1.5 million to $4.5 million or 13 cents per share, down from $6 million or 18 cents per share in the last financial year's third quarter.
Sales in the quarter dropped by $41.5 million to $241.2 million. That's down from $282.7 million in the same quarter the previous year.
CEO Rod Hepponstal says in a statement the disappointing results reflect challenges in the external operating environment and the company's internal operations.
He says the company has moved quickly to realign the business and drive cost efficiencies, and thanked departing employees for their contributions.
Companies in this story: (TSX:HLF)
The Canadian Press