First-half profits at Weyburn Inland Terminal in Weyburn, Sask., are down significantly, due largely to consecutive years of flooding in the company’s core market area and lower-than-normal seeded acreage.
WIT announced after tax earnings of $900,000, or 17 cents per share, for the six-month period ending June 30, compared to $3.6 million, or 67 cents per share during the same period last year.
A company news release said earnings dropped across all business areas.
Seeded acreage in the terminal’s core market area was 25 percent below normal in 2010 and 75 percent below normal in 2011.
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Working capital as of June 30 was $1.5 million compared to $2.9 million a year earlier. Retained earnings increased slightly to $30.8 million.
The company will pay dividends of $1.35 million this year, or five cents per share. WIT will also spend $2.5 million this year on improvements to its grain handling assets.
“Certainly, we’ve had a number of good years in a row and when you’re in an ag business, you have to be prepared to have bad years, too,” said chief executive officer Rob Davies.
“It’s not a year that we’re going to enjoy, certainly, but financially, we’re very stable, we have good working capital and good retained earnings.”
Davies said WIT is developing plans that will allow the company to operate in a new, post-Canadian Wheat Board grain marketing environment.
