GKL records yearly decline in earnings; Subsidiary welcomes turnaround in profitability
GraceKennedy Limited (GKL) ended the 2010 financial year with net profit of $2.25Bn; 13% below the $2.57Bn that was recorded in 2009. Lower interest income, FX losses from the appreciation of the local dollar in addition to weak consumer spending all contributed to the performance throughout the year. However, its subsidiary Hardware and Lumber (H&L), welcomed a turnaround to profitability during the year. The company recorded net profit of $19.3Mn compared to the loss of $225.7Mn last year. The reduction in overhead costs in addition to the positive impact of the appreciation of the local dollar both contributed to the financial performance during the year.