Good conference call
First, I'd like to start by pointing out that no analyst or investor has made any mention of the employees laid off by the company and that certainly is a painful process in this economy. I am sure HR and the divisions are working to keep in contact with these people so as to bring them back on line or in different fashion as is necessary in the next phases of growth. SunOpta has always taken very good care of its employees. Let us hope everyone gets settled now that this restructuring is underway.
Be that as it may, the call was quite good. Commodity costs remain challenging, especially in grains. Snacks and fruits are looking much better and fiber is diversifying. Smart.
1) Purity Life and Tradin really came though this last quarter. -Christine Healy-Scotia Capital
2) Perhaps around 25 manufacturing plants are running now with 25% under expansion and 30 million in total CAPEX for the year. Coffee and cocoa sales are down but margins are up big for Tradin. -Scott Van Winkle
3) S-1 filing is done for the SEC for Mascoma'a IPO where the partnership with Valero seems to be moving right along for commercial biorefining.
I was really pleased to hear Steve Bromley on the call. Bromley was Jeremy Kendall's right-hand man through the early years and he bared the brunt of heavy revenue growth before synergies and moves to manufacturing were taking affect. I think finally enough segments are moving like the well-oiled machine we have always known existed but wasn't getting enough fuel.