Viterra profit falls 10%, but EBITDA rises 15%
by Eric Schroeder
CALGARY, ALTA. — Net earnings at Viterra Inc. fell 10% in the third quarter ended July 31, easing to C$111,064,000 ($113,079,000), equal to C$0.30 per share on the common stock, from C$123,487,000, or C$0.34 per share, in the same period a year ago. The most recent results included a one-time income tax item of C$31 million and C$21 million in costs associated with the early redemption of company bonds. EBITDA, meanwhile, increased 15% to C$287,964,000 ($293,189,000) from C$251,264,000.
“Viterra once again achieved impressive quarterly results,” said Mayo Schmidt, president and chief executive officer. “For the year our Agri-Products business segment has delivered record results. Our Grain Handling and Processing business segments have also performed well. I am very pleased that our Viterra team remains focused on strong operational performance while we work to complete the transaction with Glencore.”
Within the company’s Grain Handling and Marketing Segment, EBITDA in the third quarter fell 3% to C$102,811,000 ($104,656,000) from C$106,161,000 in the same period a year ago.
“During the third quarter, lower global shipping volumes were offset by stronger grain handling margins and solid results from the company’s international grain marketing activities,” Viterra said.
Total revenues in the Grain Handling and Marketing Segment rose 1% to C$2,213,403,000 ($2,252,981,000) from C$2,186,811,000.
EBITDA in the Processing Segment rose 14% to C$31,477,000 ($32,041,000) from C$27,506,000, while revenues increased 35% to C$326,668,000 ($332,449,000) from C$242,764,000. Viterra said the improved EBITDA reflected better contributions from canola, malt and oats, which offset softer results in pasta.
For the nine months ended July 31, overall net earnings at Viterra were C$255,867,000 ($260,413,000), or C$0.69 per share, up 1% from C$254,327,000, or C$0.68 per share, in the same period of fiscal 2011. EBITDA was C$661,824,000 ($673,673,000), up 12% from C$590,040,000.