WINNIPEG – Good earnings on almost all grains and declining ocean freight rates helped the export marketing arm of the three prairie pools make record earnings in 1995-96.
“We just had a lot of things go right for us,” said Kenneth Matchett, chief executive officer of Xcan Grain Pool Ltd.
“It’s unusual to have so many things go right for you in one year. Often, there’s something that bites you.”
Matchett said Xcan was a major contributor to positive financial results for the pools this year, especially for Manitoba and Alberta.
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Speaking to the annual meeting of Manitoba Pool Elevators, Matchett said Xcan had net earnings of $12.173 million before taxes, a 29 percent increase from the previous year.
Xcan shipped 4.1 million tonnes of grain during 1995-96, down two million tonnes from the previous year because the pools took over selling canola to domestic crushers and oats to the United States after the Crow Benefit transportation subsidy ended.
Drop in sales
Because of the lower volumes handled, Xcan’s sales dropped to $1.4 billion from $1.8 billion the previous year, Matchett said.
Xcan also received more than $1 million from an outstanding insurance claim dating back more than 10 years.
Two senior employees were convicted of fraud after they used company money to speculate in the Chicago futures market in 1985.
Xcan had a fidelity bond with Canadian Surety. But the insurance company argued trading losses weren’t covered by the bond.
Xcan filed a civil suit to get the money. A judge ruled in Xcan’s favor two years ago. The insurance company was unsuccessful in an appeal and paid the claim plus interest a year ago.
