Restructuring charges hit Marteks bottom line

Restructuring charges hit Martek's bottom line

The chief executive of Martek Biosciences has hailed the food-ingredient group's fourth-quarter results, which included rising sales but also a US$6m loss.

CEO Steve Dubin said yesterday (8 December) that the US firm's performance in the three months to 31 October "came in at the high end of expectations" and "concluded a year of many accomplishments for Martek".

Martek's fourth-quarter revenues rose 36% to $119.1m but the group posted a net loss of $6.1m thanks to a restructuring charge of $30.7m. Last month, Martek switched some of the production at a site in Kentucky to a plant in South Carolina.

For the full year, revenues climbed 30% to $450m. Martek's net income fell from $40.6m to $27.9m due to the restructuring charge.

Dubin, however, listed Martek's accomplishments over the year. "Revenue grew across all business segments in 2010, our core infant formula ingredients business was strengthened through the extension of the terms of two of our key infant formula sole source supply agreements, and significant improvements on the operational side of the business were implemented which helped drive growth in both margins and income," he said.

"In addition, we expanded our business platform through the acquisition of Amerifit, and made significant progress on our product and technology pipeline, both of which provide Martek with exciting opportunities for future growth."