World Grain - February 2012 - 14

newsreview
Viterra annual earnings up 36%
CALGARY, ALBERTA, CANADA — Viterra Inc. announced on Jan. 18 record ﬁnancial results for the year ended Oct. 31, 2011, which it attributed to strong contributions from its agri-products operations, higher volumes for the Australian grain handling and marketing operations and a solid performance from the processing operations. For the year, Viterra generated EBITDA of C$702 million, a 36% increase over the prior year, as all three business segments increased sales revenue and gross proﬁt contributions relative to ﬁscal 2010. Agri-products’ EBITDA increased 59% on strong fertilizer volumes and pricing. Grain Handling and Marketing’s EBITDA rose 28% due to record grain receipts and shipments in Australia and strong results from North American Grain. The consolidated global pipeline margin for ﬁscal 2011 increased to C$37.11 per tonne compared to C$32.83 per tonne in ﬁscal 2010. Processing’s EBITDA increased 19%, reﬂecting the new pasta and oat businesses acquired in the latter half of ﬁscal 2010 and a combined food processing margin of C$116.94 per tonne versus C$101.85 per tonne last year. Viterra’s net earnings for the year rose 83% to C$265 million compared to C$145 million in ﬁscal 2010, while earnings per share increased to C71¢ from C39¢. “Viterra has an enviable position in this global market, a vertically integrated business model, excellent assets in key growing regions, and an efﬁcient global marketing network all supported by a strong liquidity position,” said Mayo Schmidt, Viterra’s president and chief executive ofﬁcer. For the fourth quarter, Viterra generated C$3.1 billion in sales and other operating revenues representing an increase of C$1.1 billion or 57% from the fourth quarter of ﬁscal 2010. The increase was primarily attributable to higher commodity prices, which increased Grain Handling and Marketing’s revenues.

Viterra: Earnings to increase with end of grain monopoly
CALGARY, ALBERTA, CANADA — Viterra Inc. on Jan. 11 provided guidance on the projected ﬁnancial beneﬁts to the company as a result of the new regulatory environment for the marketing of grain in Canada. With the ability to purchase all grades of wheat, barley and durum directly from growers, the company expects to increase its earnings by attracting additional volumes and optimizing its operational efﬁciencies. Viterra said it anticipates the additional volumes at primary grain elevators and port terminals will generate higher revenue from the ﬁxed cost facilities and earn additional merchandising margins. Viterra said it expects to capture supply chain efﬁciencies as it executes with a higher degree of precision given direct relationships with the railroads and an unmatched asset network. Viterra said it expects to begin realizing modest beneﬁts in the fourth quarter of 2012, with more signiﬁcant impacts in 2013. In ﬁscal 2014 and beyond, the company anticipates its annual earnings before interest, taxes, depreciation and amortization to increase by C$40 million to C$50 million per year. This guidance is based on the assumption of an increase in consolidated global pipeline margin of C$2 to C$2.50, which includes a 1% to 2.5% market share increase. “This is an exciting era for both Canadian grain producers and for Viterra,” said Mayo Schmidt, president and chief executive ofﬁcer of Viterra. “Viterra has built an impressive global footprint with irreplaceable assets in Canada and South Australia, two of the world’s most important export markets, and an international marketing network spanning the globe. This allows Viterra to be a leading exporter of key ingredients and highly competitive on a global basis. With the new marketing freedom in Canada, Viterra’s international network will beneﬁt growers as it provides them access to additional global markets.”

For more information, see Page 118.

February 2012 / World Grain / www.World-Grain.com

http://www.prive.fr http://www.World-Grain.com

World Grain - February 2012

Table of Contents for the Digital Edition of World Grain - February 2012