Ter Beke sees '99 loss on dioxin crisis
Date: 16-Sep-99
Country: BELGIUM
Ter Beke said in a statement the extent of its losses would depend
partly on the what payments the government made to food companies
affected by the dioxin affair.
"We expect a substantial loss for the whole of 1999, rather than the
clear profit improvement predicted up to the end of May," Ter Beke said.
The dioxin crisis broke at the end of May after carcinogenic dioxin was
found to have entered the food chain via contaminated animal feed.
Products were withdrawn from sale and scores of countries around the
world imposed restrictions on Belgian food imports.
Ter Beke said the crisis wiped out profits made up to the end of May,
dragging the company to a net loss of 117.5 million Belgian francs ($3
million) for the first six months, from a profit of 21.1 million francs
in the same period of 1998.
The total loss from the crisis would amount to between 350 and 400
million francs, it said.
Ter Beke said it would increase its shareholders' funds this year to
ensure it had sufficient funds to continue its restructuring and
investment programme.
The company said that although demand for its products - which include
high-fat pork sausages and other products which were worst-hit by the
dioxin crisis - had picked up in Belgium since August, export demand was
slow to recover.
"It is very difficult to predict when foreign confidence in Belgian food
products will be restored," it said.
Ter Beke said it had taken measures to reduce costs and improve
profitability and had the crisis under control.
The positive effects from these measures would be felt in 2000, when it
expected to resume making a profit, it added.