Hot House Loss Widens

TORONTO - Aug 15/06 - SNS -- Hot House Growers Income Fund reported a loss of CDN $1.122 million on sales of $20.852 million for the second quarter ending June 30, compared to a net gain of $3.203 million on sales of $23.897 million during the same three month period last year.

This increased the loss for the first half of the current fiscal year to $1.394 million on sales of $23.657 million, compared to a net gain of $3.37 million on sales of $28.625 million the first size months of the previous fiscal year.

The company said the loss reflected costs associated with the purchase of Village Farms, a leading North American producer and marketer of premium-branded hot house vegetables. This transaction should double the company's production capacity.

Second quarter results were also hurt by the strong Canadian dollar and lower harvest volumes. The company blamed lower light levels at the growing season, and the substituting of tomatoes, a higher yielding crop, with peppers, a lower yielding crop.

Subscribers can read the full text of the article by Clicking here