SASKATOON – A strong third quarter has kept Saskatchewan Wheat Pool on course to surpass last year’s profits.
The company recorded pre-tax earnings of $9.7 million during the three months ending April 30, boosting its pre-tax earnings for the first nine months of the 1995-96 fiscal year to $40.1 million.
At the same point last year, the company had earned $30.3 million, on the way to a year-end result of $32.6 million.
Net after-tax earnings for the first nine months were $21.8 million, which is actually about $2.1 million lower than last year. Corporate taxes were unusually low last year due to a change in accounting policies.
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Despite the decrease in after-tax earnings, chief executive officer Don Loewen said in a press release he’s encouraged by the performance to date and optimistic about the year-end result: “As the company enters its final quarter of the fiscal year, I believe it is well positioned to significantly exceed last year’s net earnings.”
Sales and operating revenue totaled $2.92 billion in the first nine months, $236.5 million ahead of last year.
Most of that increase came in agri-food processing, where sales jumped by $145 million, or about 33 percent, to $578 million. Those results include the oilseed processor CanAmera Foods, Prairie Malt and Dawn Foods Canada.
Farm supply sales during the third quarter were up slightly to $43.9 million, despite the late spring and accompanying delays in field work and seeding. For the nine months, sales and revenue from farm supplies were up about 20 percent to $171 million. Farm supply sales are expected to be strong in the fourth quarter.
Operating earnings in the company’s major business segments for the first nine months were: grain handling and marketing $37.9 million ($47.3 million during the same period last year), farm supplies $21.5 million ($6.3 million), agri-food processing $20.1 million ($21.2 million), livestock marketing $3.4 million ($4.4 million), publishing $1.7 million ($1.4 million).
Results in other areas
Other highlights of the pool’s performance include:
- Grain handlings at country elevators for the first nine months totaled 6.6 million tonnes, down from 7.7 million tonnes in the same period last year. Volume of grain handled at export terminals was 4.6 million tonnes, down from 6.8 million.
- Earnings per share were 15 cents in the third quarter and 74 cents for the year to date.
- The severe downturn in the cattle industry has hurt returns in the livestock marketing division, although lower expenses allowed for a nine-month earning of $3.4 million. Earnings at Western Producer Publications are up 15 percent due mainly to increased advertising revenue.
