Menu Foods posted a third-quarter loss after the pet food recalls and announced that customers who made up more than a third of its sales in 2006 will stop doing business with them.
The company said that it lost $19.9 million in the third quarter of this year. Last year, Menu Foods had a profit of $1.35 million in the third quarter.
“The fund has been informed that customers whose volume represented approximately 37 percent of sales in 2006 will no longer be purchasing these products from Menu,” the company stated. “The effects of this lost business will be felt over time.”
Customers who account for almost 14 percent of sales in 2006 have already stopping doing business with Menu Foods.
The company’s forecast is bleak.