In the three months to 31 March 2005, the firm achieved a net income of 8.5m ($16m) on sales of 865m, compared to a net income of 19m in the same period last year on sales of $829m.

The share price dropped 13% to 10.62 (CA$24.84) on the Toronto Stock Exchange following the announcement of the results at Tuesday's AGM.

Chief executive Pierre Karl Pladeau blamed the disappointing results on the poor performance of the firm's US commercial operation, which he is hoping to sell, as well as the difficulties at Corby in the UK and strike problems at the firm's French plants.

Speaking at the AGM in Montreal, Pladeau said: "The momentum generated in 2004 was not translated to the first quarter of 2005."

Chief financial officer Claude Hlie added that the results would continue to slide due to pricing pressures and the badly-performing US commercial division, hitting a "low point" in the second quarter of this year.

Story by Josh Brooks