Saskatchewan Wheat Pool has reported a 28 percent drop in earnings for the first half of 1996-97.
Two weeks ago, the pool publicly warned shareholders that it had experienced a sharp drop in earnings for the second quarter of 1996-97.
Last week it released the numbers behind that prediction, reporting six-month earnings of $12.3 million, down from $17.2 million during the same period last year.
Earnings per share for the period were 41 cents, down from 58 cents. Cash flow per share was $1.33, compared with $1.34 a year earlier.
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Grain shipping problems at the West Coast and reduced margins in canola crushing were cited as the main reasons for the drop in earnings.
Chief executive officer Don Loewen said the pool remains in “excellent” overall financial condition and will continue to focus its business strategy on long-term growth.
“The bottom line remains strong, despite a period of challenge,” he said.
Supply sales a highlight
The pool said farm supply sales were a highlight of the first half, with sales up 10 percent to $141 million and a strong spring expected if the weather co-operates.
As for the troubled oilseed crushing sector, the pool said it expects margins to improve next year at the oilseed crushing subsidiary CanAmera Foods.
Here are some highlights of the six-month report:
- Sales and operating revenue were slightly over $2 billion, compared with just under $1.8 billion a year ago.
- Earnings from operations were $23.5 million, down from $29.9 million.
- Earnings from grain handling and marketing were $23.1 million (down from $30.3 million last year.) Farm supply sales earnings were $14.6 million ($13.3), agri-food processing $6.3 million ($10.1), livestock marketing $1.9 million ($2.8), publishing $1 million ($400,000).
