Cermaq (Mainstream) Reports Massive Losses

Cermaq, the parent company of Mainstream Canada, reported a massive drop in second-quarter profit Friday, with CEO Geir Isaksen pinning the blame on the company’s seemingly bottomless problems in Chile, and the higher cost of raw materials afflicting its feed business EWOS.

Cermaq reported a second-quarter profit of NOK 100,000 (€12,514/$18,917) -- a huge turndown from the NOK 184.3 million (€148 million/$224 million) it notched during the same period last year.

Mainstream, Cermaq’s Chilean arm, reported a pre-tax quarterly loss of NOK 54.7 million (€6.8 million/$10.3 million).

“Costs in Chile were high due to disease and low harvest weight,” CEO Geir Isaksen said. “Our highest priority remains improving production conditions in the region. For EWOS, higher raw material costs reduced the result."

In the year to date, the company has lost NOK 37.8 million (€4.7 million/€7.2 million), compared to a profit of NOK 321.7 million (€165 million/$250 million) through the first half of 2007.