SUNOPTA : SunOpta Slides on Lowered 2007 Forecast

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27 janv. 2008 •11:28

Friday January 25, 7:50 pm ET

Organic Food Producer SunOpta Tumbles to 52-Week Low After Cutting Its '07 Earnings Outlook

NEW YORK (AP) -- Shares of SunOpta Inc. plunged to a new 52-week low Friday after the organic foods producer drastically lowered its fiscal 2007 profit forecast and said financial restatements are likely.
The Canadian company now anticipates 2007 net income in a range of 12 cents to 14 cents per share, sharply below its previous outlook between 35 cents and 40 cents per share.
SunOpta late Thursday blamed problems in its fruit and bioprocess groups that led to $12 million to $14 million in write-downs and provisions.
It expects full-year revenue of more than $800 million, which would top its former sales outlook of $775 million to $800 million.
Analysts polled by Thomson Financial predict 2007 earnings of 34 cents per share on revenue of $795.8 million.
Northland Securities analyst Chris Krueger cut his rating on SunOpta to "Market Perform" from "Outperform."
"With significant problems in its fruit group and a slowdown in its opta minerals division, as well as cloudiness in the prospects of its bioprocess division, we believe the stock will be dead money in the near-term," he wrote in a client note.
The analyst trimmed his fourth-quarter earnings estimate to a loss of 13 cents per share from a profit of 7 cents per share and reduced his 2007 forecast to 12 cents per share from 32 cents per share. Krueger also lowered his 2008 prediction to 34 cents per share from 43 cents per share on anticipated lower margins.
Edward Aaron of RBC Capital Markets said the company's revised forecast was worse than expected, with 2007 sales forecast its only bright spot.
The analyst cautioned that the fruit unit's excess inventory issue may not be a one-time problem, and that could weaken earnings.
"Demand is generally still good, but clearly there are some process control issues that need to be addressed," he said.
Aaron reiterated an "Outperform" rating on the shares.
Shares of SunOpta slid $3.51, or 36.7 percent, to $6.05 Friday. The stock hit a fresh low of $5.50 earlier in the session.

http://biz.yahoo.com/ap/080125/sunopta_mover.html?.v=2