Viterra posts five-fold Q1 profit

Source: Exec Digital Canada

Date :3/13/2008 5:16:25 AM

Leading Canadian grainhandler Viterra Inc. announces a first quarter profit of $41.2 million, a five-fold increase over the figure for the same period in 2007.

Company CEO Mayo Schmidt has attributed the positive results mainly to the $1.8 billion Agricore takeover last year, saying: “With our recent asset expansion, Viterra has grown sales, margins and earnings.

“Sales climbed $870 million to $1.3 billion for the first quarter, up from $447.6 million for the same period last year,” he added, indicating the extent of Viterra’s remarkable growth.

All the figures point upwards for Viterra, with the grainhandling and marketing segments taking much of the credit. “Shipments from Viterra’s primary elevator system reached four million tonnes,” said Mr Schmidt.

Reaction

Market analysts were quick to praise the performance of the company, BMO Capital Markets analyst Orin Baranowsky commenting: “These results are very strong. They’re showing the benefits of the acquisition, higher grain prices and improved efficiencies.”

These words were reflected in Viterra’s stock market performance following the announcement as shares rose 9.8 percent, marking the stock’s biggest one-day gain since February 2005. Moreover, shares in the company have risen 68 percent in the past year.

March 13, 2008