Viterra posted sharply higher second quarter profits on Thursday but the earnings were not as high as traders expected.
Net earnings soared to $33.08 million from $18.41 million in the same period last year thanks to strong Australian grain shipments.
Earnings per share were nine cents but the market had expected 17 cents per share.
Share prices initially sagged but by the close had moved into positive territory.
Viterra’s Australian operation achieved record shipments during the second quarter significantly enhancing overall results. The business contributed $65 million for the quarter to consolidated earnings before interest, taxes, depreciation and amortization (EBITDA).
Total EBITDA from Australian operations rose to $76.24 million or 46 percent of the total.
North American grain handling contributed $58.14 million to EBITDA. North American agri products contributed $16.62 million and processing $17.47 million for a total of $92.23, or 55 percent of total EBITDA.
North American agri product business was down in the quarter but the company thinks some of business was simply delayed and will turn up in the third quarter.
Viterra chief executive Mayo Schmidt said the company supports the federal government’s plan to end the monopoly of the Canadian Wheat Board and expects the move will prove positive for farmers, and for the company and its shareholders.
