11 Jun 2008
CALGARY, Alberta, June 11 (Reuters) - Viterra Inc , Canada's largest grain handler, on Wednesday said quarterly profit more than tripled on high commodity prices and a strong contribution from Agricore's assets following last year's C$1.8 billion ($1.8 billion) takeover of Agricore United. Viterra also lifted its outlook for annual grain margins, citing improved merchandising opportunities, including selling more production a delivered basis, and better operational efficiency. Shares of the company rose 2 percent following the release of the results. The company, which changed its name from Saskatchewan Wheat Pool after the Agricore acquisition, earned C$33.6 million, or 16 Canadian cents a share, in its second-quarter ended April 30, up from C$9.2 million, or 10 Canadian cents, a year earlier. Results included a net corporate tax provision of C$6 million, compared with a C$4.9 million provision last year. The Regina, Saskatchewan-based company had sales of C$1.5 billion, up more than 270 percent from C$402 million. Besides the contributions from the Agricore assets, operating results were bolstered by improvements in grain margins and stronger fertilizer sales, the company said. Farm supply sales were brisk as producers prepared to plant crops in a year of historically high grain prices. Viterra said it handled 45 percent of grain from Western Canada, one of the world's largest grain-exporting regions, nearly double Saskpool's share of a year earlier. Margins were up 63.2 percent to C$35.12 per tonne. It raised its expectations for annualized margins to a range of C$26-C$30 a tonne from the previous C$24-C$26. Last month, the company raised C$441 million in a share offering to pay for future acquisitions. Chief Executive Mayo Schmidt has said the company is looking at opportunities in biofuel and oilseed crushing, food and feed processing, and the crop supply retail sector, with an eye to expanding beyond Western Canada. The company said on Tuesday it was business as usual at its Regina head office after unionized workers voted against a contract offer from the company. It said it is prepared to maintain office functions if some employees strike on July 7. The dispute is over job classifications, hours of work, wages and benefits. |