While the major grain companies have reported grim financial news at this fall’s round of annual meetings, one smaller company is bucking the trend.
Weyburn Inland Terminal Ltd. last week announced net earnings of $742,000, or 70 cents per share, for the third quarter of 1999.
That brings earnings for the first three quarters of the year to $1.29 million, compared with $1.01 million during the same period last year.
“We’re pleasantly surprised,” said WIT president Claude Carles.
“Our third quarter was better than we budgeted.”
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In part, the strong third quarter reflects the fact that grain traditionally delivered during April, May and June was delayed until July and August, he said in his report to shareholders.
Earnings during the three months ending Sept. 30 were nearly double the $376,000 net earning recorded during the third quarter of 1998. By the end of the year, the company should be close to last year’s after-tax earning of $1.87 million.
“We expect to be in that range,” said Carles.
“But from the looks of December we may be just below that.”
He said fourth quarter results may be below budget due to slow calls for movement of Canadian Wheat Board grains, which make up about 95 percent of the terminal’s business.
The wheat board has reported record movement of the six principal grains out of Canada’s west coast ports during November but Carles said that hasn’t been reflected in the terminal’s shipments.
Its market area was plagued by late seeding and other production problems this year, which will likely result in below average grain volumes for the coming year. The company is offering free drying for series A contract CWB grain up to 18.5 percent moisture.
The terminal is also handling more non-board grains than ever, reflecting those production problems and the low price of wheat.
“I guess we’re trying to get into that market a little more than we have in the past,” said Carles.
In his letter to shareholders, Carles also reported:
- The terminal paid $290,000 in dividends to holders of common and preferred shares in the quarter, bringing the total for the year to a record $652,000. Another $312,000 was paid in freight and dockage premiums, bringing the total to $729,000.
- Gross revenue during the quarter was up 25 percent to $3.5 million. Year-to-date revenues are up 17 percent to $8.3 million.
- Cash flow from operations for the first three quarters was $2.2 million, up from $1.9 million in 1998.
- Working capital at the end of September was $2.89 million, compared with a deficit of $490,000 in the same period last year.
