The Globe and Mail reports in its Thursday, Nov. 20, edition that Metro announced that a mechanical issue that shut down its frozen food distribution centres for nearly two months has been resolved, though it impacted fourth quarter earnings.
The Globe's Susan Krashinsky Robertson writes that Metro reported $22.5-million in disruption costs after tax for lost food products and repairs in the quarter ended Sept. 27, due to issues with its refrigeration system. It anticipates an additional $15-million to $20-million in costs for the first quarter, while expecting some insurance recoveries.
Metro incurred costs for contingency plans, which included shipping products from its Terrebonne, Que., distribution centre and using third-party storage in Ontario. Metro's net earnings for the quarter fell to $217-million or $1 in fully diluted earnings per share, compared with $219-million or 98 cents per share in the same period last year. Excluding the impact of the shutdown and other factors, adjusted net earnings grew to $246-million or $1.13 in fully diluted earnings per share, compared with $226.5-million or $1.02 per share in the fourth quarter last year. Metro's sales grew by 3.4 per cent in the quarter to $5.1billion.
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