World Grain - October 2012 - 21

newsreview
Viterra profit falls 10%
CALGARY, ALBERTA, CANADA — Viterra Inc. announced on Sept. 6 a 10% drop in proﬁt for the three months ended July 31, due to a one-time income tax item. Net earnings decreased 10% to C$111 million (30¢ per share) compared to C$123 million (34¢ per share) in the same quarter last year after the company recorded a one-time income tax item of C$31 million and C$21 million in the costs associated with the early redemption of company bonds. Viterra reported EBITDA for the quarter of C$288 million, an increase of 15% compared to the C$251 million in the same quarter of 2011. “Viterra once again achieved impressive quarterly results,” said Mayo Schmidt, Viterra’s 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.” The Agri-Products segment improved its quarterly results over the prior year due to strong fertilizer pricing, the new fuel business in Western Canada and higher crop protection product sales. Favorable weather across the Canadian prairies and strong commodity prices led to higher canola and overall seeded acreage which supported increased demand for agri-products. Grain Handling and Marketing’s EBITDA was C$103 million in the third quarter versus C$106 million in the same period last ﬁscal year. 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. On a year-to-date basis, the consolidated global pipeline margin increased to C$39.54 per tonne compared to C$36.80 per tonne a year earlier. The Processing segment’s EBITDA for the third quarter improved to C$31 million compared to C$28 million in 2011. Improved results from canola, malt, and oats were in part offset by the pasta operation, which is experiencing competitive pricing pressures. The food processing margin for the third quarter decreased to C$108.03 per tonne compared to C$120.77 per tonne last year due to lower pasta margins and a change in product mix as there are now more canola volumes given the new crush facility in China.

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Putin says Russia will double grain exports
VLADIVOSTOK, RUSSIA — Russian President Vladimir Putin said on Sept. 7 that the country plans to double its grain exports by 2020, UPI reported. “We project that our country will be producing 120 million to 125 million tonnes of grain a year by 2020,” he said at the AsiaPaciﬁc Economic Cooperation summit meeting in Vladivostok, Russia. That ﬁgure would “increase our export capacity to 30 million to 35 million tonnes, and even up to 40 million tonnes,” Putin explained.
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World Grain - October 2012

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