Clearwater Seafoods Posts $16.4 Million Profit

HALIFAX (Canadian Press) — Clearwater Seafoods Inc. rose to profitability in the fourth quarter as pricing and supply contributed to improved results.

The company had a $16.4-million profit in the fourth quarter, an improvement from the year-earlier period when the Halifax-based company booked a loss of $4.9 million.

Revenue was $87.1 million, rising from $82.8 million a year earlier.

Clearwater attributed the improvement to higher sales prices and a shift to higher-margin species of seafood. Those positive factors were partially offset by lower sales volumes, higher costs and an strong Canadian dollar.

Chief executive Ian Smith says demand for Clearwater's products continues to be strong and it looks as if earnings momentum will continue in 2012.

Last month, the company settled a dispute with Icelandic bank Glitnir and announced on Feb. 29 that it would book a $12.4-million gain in the fourth quarter, or 24 cents per share.

The dispute with Glitnir related to derivative contracts and interest rate swaps that Clearwater held with Glitnir before the bank went into receivership in 2008 and was subsequently nationalized by the Icelandic government.

For the full year, Clearwater's sales were $332.8 million in 2011, up from $315.5 million in 2010. Net profit was $22.9 million, compared with a loss of $15.3 million in 2010.