Viterra 4Q revenue, net up on Agricore Integration

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Publish time:1/21/2009 12:00:00 AM      Source: www.cnchemicals.com
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January 21, 2009


Viterra 4Q revenue, net up on Agricore Integration


Viterra Inc. posted higher fourth-quarter earnings reflect on the back of increased agri-products revenue as well as the company''s "continued focus on operational excellence" and the full integration of Agricore United.

The Regina, Saskatchewan agribusiness earned C$47.8 million or 20 Canadian cents a share in the fourth quarter compared with C$842,000 or nil a year earlier.

The Thomson Reuters mean earnings estimate was 8 Canadian cents a share.

The year-earlier results are from a special fifth quarter instituted to align the year-ends of Saskatchewan Wheat Pool and Agricore United. The two companies combined in September 2007.

Revenue was C$1.72 billion versus C$1.29 billion a year earlier and compared with the mean analyst estimate of C$1.26 billion.

The grain handling and marketing segment contributed C$108.7 million in revenue. In the year-earlier quarter, the segment recorded revenue of C$112.4 million. Revenue from the agri-products segment was C$89.8 million versus C$42 million a year earlier, and agri-food processing revenue rose to C$8.4 million from C$7 million a year earlier.

Consolidated EBITDA was C$100.3 million in the latest quarter, up from C$62.3 million a year earlier.

As reported, Viterra''s third-quarter results were much higher than a year earlier, largely due to the "robust" agricultural environment, the company said.

CIBC World Markets analyst Jacob Bout said he expects Viterra to benefit from increased grain production in 2009, as it''s expected to be a record crop year for Canada.

In Toronto Wednesday, Viterra closed down 34 Canadian cents to C$8.20.