Viterra profit jumps 80pct

WINNIPEG: Viterra Inc. reported an 80 percent rise in quarterly net profit on Thursday, bolstered by brisk South Australian crop shipments.

Canada's biggest grain handler said record-high crop shipments from South Australia boosted earnings even as wet weather delayed planting in Western Canada and hurt sales of farm products like seed and chemicals.

Viterra's Australia crop-handling network of elevators and port terminals has given the company a geographic hedge against weather-related crop problems in Canada since it acquired the former ABB Grain in 2009.

"From a strategic perspective, our geographic diversification has delivered to expectations," said CEO Mayo Schmidt.

Regina, Saskatchewan-based Viterra said it had achieved its forecast C$30 million ($30.6 million) in synergies from the takeover six months ahead of schedule.

The company reported a net profit of C$33.1 million ($33.8 million), or 9 Canadian cents a share, for the second quarter ended on April 30, up from C$18.4 million, or 5 Canadian cents a share, a year earlier.

Revenue rose 33 percent to C$2.70 billion.Analysts had expected earnings of 17 Canadian cents a share and revenue of C$2.3 billion, according to Thomson Reuters I/B/E/S.

Viterra also declared a semiannual cash dividend of 5 Canadian cents per share, payable July 28. The company's dividend rate is currently 10 Canadian cents per year.

COPYRIGHT REUTERS, 2011