Saskatchewan Wheat Pool doubled its net earnings in the second quarter of 1997-98 over the same period last year.
The company posted earnings of $7.2 million (or 24 cents a share) on total sales and operating revenue of $988.7 million in the Nov. 1, 1997 to Jan. 31, 1998 period, a company news release said last week.
The year before, it had earnings of $3.3 million (or 11 cents a share) on sales of $958.6 million.
Better grain handling volumes and stronger food processing results were key factors in the improvement, the company said.
Read Also
Agriculture ministers agree to AgriStability changes
federal government proposed several months ago to increase the compensation rate from 80 to 90 per cent and double the maximum payment from $3 million to $6 million
Lyle Spencer, the pool’s head of finance, said management is projecting that at year end, the company will financially be about where it was in 1997.
“Considering all that we have been spending to gear up the company for the future, that’s a very good result,” he said.
“We’ve spent a lot of money on human resources, staff training and systems to prepare the organization for when all our new concrete elevators are built, as well as the other initiatives such as Can Grow and farm supply operations.”
The second quarter report said Canamera Foods had higher canola crushing margins and the amount of canola crushed, in the six months to Jan. 31 was up 19 percent over the same period last year.
Processing up 181 percent
Second quarter operating earnings in grain handling and marketing were up by 52 percent to $9.5 million and food processing increased by 181 percent to $6.3 million.
Livestock marketing earnings were up 29 percent to $1.8 million and publishing also showed improved results, up 25 percent to $500,000. Farm supplies were down eight percent to $7.1 million. Spencer said the main reason was poorer returns from the company’s interest in Western Co-operative Fertilizers because of lower world fertilizer prices.
In the first six months, the pool had net earnings of $16.9 million, up 38 percent over the same time last year.
Cash flow provided by operations increased to $45.3 million, up from $40.6 million in the first half of 1996-97.
Grain handling volume was up 12 percent over the first half of last year thanks to good weather, improved operation of the transportation system and a strong export program by the Canadian Wheat Board, the pool said.
Port handlings were ahead by 30 percent and increases were reported at all facilities.
