Viterra Inc.: profit jumps on grain boom, higher margins

Regina / CA. (vi) Greater efficiencies through Viterra´s expanded grain elevator network and strong commodity prices boosted consolidated second quarter earnings by 24,4 million CAD (Canadian Dollar) to 33,6 million CAD in 2008, compared to earnings of 9,2 million CAD for the three months ended April 30, 2007. For the six months ended April 30, 2008, net earnings grew by 57,7 million CAD to 74,8 million CAD, compared to 17,1 million CAD for the same six-month period of the prior year.

Earnings before interest, taxes, amortization, integration costs, gains or losses on asset disposals and pension settlement provisions (EBITDA) for the three months ended April 30, 2008 improved by 54,7 million CAD to 78,5 million CAD compared to 23,8 million CAD in the same period of 2007. EBITDA for the first half of the fiscal year reached 159,8 million CAD, compared to 50,2 million CAD for the six months ended April 30, 2007. This solid performance reflects continued improvements in grain margins, stronger fertilizer sales and margins and incremental EBITDA generated on the assets acquired from Agricore United (AU) in May 2007. Cash flow provided by operations improved by 41,8 million CAD to 63,7 million CAD for the three months ended April 30, 2008, compared to 22 million CAD reported in the same period of the prior year. For the six months ended April 30, 2008, cash flow provided by operations was 121,7 million CAD, an increase of 75,2 million CAD over the same period of 2007.

Results this quarter reflect the value of Viterra´s pipeline management strategy and its focus on providing superior products and services to both farm and end-use customers. The Company:

• increased its percentage of 50 and 100-car trains shipments creating faster cycle times, and thus increasing the overall car supply for the industry;
• hired international trading personnel who are responsible for securing new markets for Canadian commodities and who will expand Viterra´s vessel freight expertise to bring greater value and service for our producers and end-use customers;
• delivered anhydrous ammonia safety training to 6’300 farmers and subsequent to quarter end, extended its hours of operation for this product to 24 hours, seven days a week to support a compressed selling season;
• provided exclusive, semi-exclusive and identity preserved products to the farm base to strategically link Prairie growers to destination customers around the world;
• provided focused agronomic services to maximize value creation and net returns per acre through crop selection and input quantities; and
• implemented a new web-based portal site customized to provide localized market information, customer account data, agronomic support and commodity related educational tools to Viterra farm customers.

Info: Financial highlights of Viterra´s second fiscal quarter 2008 are to find in the company´s complete press release.

_{About: Viterra Inc. is Canada´s leading agribusiness, with extensive operations and distribution capabilities across Western Canada, and with operations in the United States and Japan. The new company – headquartered in Regina (Saskatchewan) – is diversified into sales and services of crop inputs and equipment, grain handling and marketing, livestock feed and services, agri-food processing and financial products. These operations are complemented by value-added businesses and strategic alliances which allow Viterra to leverage its pivotal position between Prairie farmers and destination customers. The Company’s common shares are listed on the Toronto Stock Exchange under the symbol VT.}