Regina, Saskatchewan, Canada
January 18, 2008
Strong sales and margins in each
of Viterra’s business segments and incremental earnings
associated with the Company’s acquisition of Agricore United
(“AU”), drove record net earnings of $106.1 million for the 15
months ended October 31, 2007. This compares to earnings of
$531,000 for the 12 months ended July 31 of the prior fiscal
year. On a trailing 12-month basis, net earnings reached $111.2
million ($0.80 earnings per share) for the period ended October
31, 2007 compared to earnings of $3.1 million ($0.03 earnings
per share) for the same 12-month period in 2006, an increase of
more than $108 million.
With Viterra’s recent change
in its fiscal year-end, the current fiscal period results
include its performance for a 15-month period ended October 31,
2007, whereas the prior fiscal year was a 12-month period ended
July 31, 2006. As a result, to assist with comparability,
trailing 12- month numbers have been provided for the periods
ended October 31, 2007 and October 31, 2006.
Earnings from continuing operations before interest, taxes,
amortization, integration costs, gains or losses on asset
disposals and pension settlement provisions (“EBITDA”) for the
12 months ended October 31, 2007 improved by more than $177.7
million to $258.0 million compared to $80.4 million in the same
period of 2006. Increases in EBITDA were a result of improved
grain margins, stronger fertilizer sales and margins and
incremental EBITDA of $114.5 million contributed from AU since
it was acquired in May 2007. Cash flow provided
from operations improved by $144.9 million to $203.9 million
($1.47 per share) for the 12 months ended October 31, 2007,
compared to $59.1 million ($0.65 per share) reported in the same
period of the prior year.
“It has definitely been a year of transformation for Viterra.
The exceptional effort by employees in all of our business
segments have contributed to our financial strength and support
the launch of our strategy for continued growth,” says Mayo
Schmidt, President and CEO. “We completed this year with
significantly better operating results and cash flow. We have a
diversified business profile; we have enhanced the scope and
geography of our operations, and have assembled a highly
efficient network of agricultural assets. In short, we’ve become
a company built to change and capture tomorrow’s opportunities
in agri-business.”
Full report:
http://cnrp.ccnmatthews.com/cnrp_files/20080118-118vt.pdf
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Viterra sees encouraging signs
in agriculture |
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Viterra today confirmed that it
has received pre-payments of
$250 million to date,
approximately $100 million ahead
of its expectations. Farmers
will often pre-purchase crop
inputs such as seed, fertilizer
and crop protection products in
preparation for spring planting.
“This activity level provides
one indication of the optimism
in the farm community and the
improved financial health of
agriculture in Canada”, said
President and CEO, Mayo Schmidt.
“Farmers have begun to secure
the product they will need to
capitalize on rising commodity
prices. We are encouraged with
the level of pre-purchases to
date and look forward to working
with our farm customers to help
capture the opportunities in
this positive economic
environment.” |
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