Viterra Inc. ("Viterra") (TSX:VT)(ASX:VTA) today announced record financial
results for the year ended October 31, 2011 due to strong contributions from its
agri-products operations, higher volumes for the Australian grain handling and
marketing operations, and a solid performance from the processing operations.
For the year ended October 31, 2011, Viterra generated EBITDA of $702 million, a
36% increase over the prior year, as all three business segments increased sales
revenue and gross profit contributions relative to fiscal 2010. Agri-products'
EBITDA increased 59% on strong fertilizer volumes and pricing. Fertilizer
margins averaged $133.53 per tonne for fiscal 2011 compared to $97.36 per tonne
in the prior year. Grain Handling and Marketing's EBITDA rose 28% due to record
grain receipts and shipments in Australia and strong results from North American
Grain. The consolidated global pipeline margin for fiscal 2011 increased to
$37.11 per tonne compared to $32.83 per tonne in fiscal 2010. Processing's
EBITDA increased 19%, reflecting the new pasta and oat businesses acquired in
the latter half of fiscal 2010 and a combined food processing margin of $116.94
per tonne versus $101.85 per tonne last year.
Financial Highlights
(in thousands - except per share
items) Twelve Months
ended October 31, Better
2011 2010 (Worse)
----------------------------------------------------------------------------
Sales and other operating
revenues $ 11,790,458 $ 8,256,280 $ 3,534,178
Gross profit and net operating
revenues 1,548,319 1,258,567 289,752
EBITDA (1) 701,906 517,583 184,323
Net earnings 265,409 145,272 120,137
Earnings per share $ 0.71 $ 0.39 $ 0.32
Operating cash flow prior to
working capital changes (1) 497,156 361,249 135,907
Per share $ 1.34 $ 0.97 $ 0.37
Free cash flow (loss) (1) 264,810 239,421 25,389
Financial Highlights
(in thousands - except per share
items) Three Months
ended October 31, Better
2011 2010 (Worse)
----------------------------------------------------------------------------
Sales and other operating
revenues $ 3,064,000 $ 1,951,692 $ 1,112,308
Gross profit and net operating
revenues 326,685 319,911 6,774
EBITDA (1) 110,578 137,958 (27,380)
Net earnings 9,462 52,671 (43,209)
Earnings per share $ 0.03 $ 0.14 $ (0.11)
Operating cash flow prior to
working capital changes (1) 70,209 88,020 (17,811)
Per share $ 0.19 $ 0.24 $ (0.05)
Free cash flow (loss) (1) (26,879) 50,554 (77,433)
(1) See Non-GAAP Measures at the end of this news release.
Viterra's net earnings for the year rose 83% to $265 million compared to $145
million in fiscal 2010 while earnings per share increased to $0.71 from $0.39.
Operating cash flow prior to working capital changes increased 38% to $497
million for the year ended October 31, 2011 reflecting higher EBITDA and lower
cash financing costs offset in part by higher current income taxes. Free cash
flow increased 11% to $265 million as the Company invested in growth capital
projects during the year including a new malt facility in Australia and a new
canola crush plant in China.
"The past year was very strong for Viterra as we demonstrated the value of our
global reach, influence and expertise to deliver record financial results in a
challenging economic environment," said Mayo Schmidt, Viterra's President and
CEO. "Looking forward, we are optimistic as strong long-term global demand
fundamentals continue to support the agricultural industry. While the current
economic environment is challenging, Viterra has an enviable position in this
global market, a vertically integrated business model, excellent assets in key
growing regions, and an efficient global marketing network all supported by a
strong liquidity position. We are focused on improving our return on assets to
drive earnings per share performance and our results demonstrate this. Given the
confidence in our business model and strategy to generate future earnings, we
have increased our dividend by 50 percent."
Increase in Semi-Annual Dividend
Today the Board of Directors approved a 50% increase in Viterra's dividend rate
to fifteen cents per share Canadian (C$0.15) per year compared to the previous
rate of ten cents per share (C$0.10). In conjunction with this new dividend
rate, the Board declared the first semi-annual cash dividend for the year of
seven and a half cents per share Canadian (C$0.075) payable February 22, 2012 to
shareholders of record on January 30, 2012. The Board will continue to review
the dividend semi-annually, taking into account the Company's cash flow,
earnings, financial position and other relevant factors.
The dividend payment applies to holders of Viterra common shares, which trade on
the Toronto Stock Exchange under the symbol VT, and to holders of its CHESS
depository instruments (CDIs), which trade on the Australian Securities Exchange
under the symbol VTA. Each CDI confers a beneficial interest in one common
share. Therefore, CDI holders are entitled to a dividend calculated on the same
basis as the holders of Viterra's common shares.
Payments to Canadian shareholders will be made in Canadian dollars, while
payments to non-resident shareholders will be made in U.S. dollars at the "noon
rate in Canada (Eastern Standard Time)" prevailing on the record date. For CDI
holders, payments will be made in Australian dollars at the "noon rate in Canada
(Eastern Standard Time)" prevailing on the record date.
Shareholders are advised that the dividend is an eligible dividend for Canadian
Income tax purposes.
Fourth Quarter Results
For the three months ended October 31, 2011, Viterra generated $3.1 billion in
sales and other operating revenues representing an increase of $1.1 billion or
57% from the fourth quarter of fiscal 2010. The increase was primarily
attributable to higher commodity prices, which increased Grain Handling and
Marketing's revenues. Revenues from Agri-products also increased due to
favourable weather in Western Canada that resulted in a successful fall
fertilizer application season. Both fertilizer volumes and pricing increased in
the fourth quarter of fiscal 2011 compared to the same period last year.
Gross profit contributions for the fourth quarter totalled $327 million, a
slight increase from $320 million a year earlier. Strong fertilizer sales
volumes and pricing increased quarterly gross profit $33 million year-over-year;
however, this increase was partially offset by lower contributions from the
International Grain group and lower malt and pasta margins. For more information
on the Company's segment results, refer to the accompanying Management's
Discussion & Analysis ("MD&A") incorporated fully into this news release.
For the three months ended October 31, 2011, EBITDA was $111 million compared to
$138 million in fiscal 2010. Higher gross profit contributions were more than
offset by an increase in operating, general and administrative expenses due to
incremental costs associated with new international marketing offices and grain
handling facilities, increased agri-products sales activity and investments in
information technology.
Net earnings for the fourth quarter of fiscal 2011 were $9 million or $0.03 per
share compared to $53 million or $0.14 per share last year due to lower EBITDA,
non-recurring impairment and asset disposal losses and higher income taxes.
During the quarter, Viterra recorded a goodwill impairment of $8 million for the
western Canadian feed operations, reflecting the continued intense competition
and overcapacity in the feed market. Asset disposal losses totalled $1 million
for the quarter compared to a gain of $7 million in 2010 when the Company sold
one of its North American grain facilities. The effective income tax rate for
the quarter was 36% compared to 18% in the fourth quarter of 2010 due to losses
incurred during the current quarter for which no tax asset was recorded. On a
yearly basis, the effective tax rate was 28% compared to 23% in fiscal 2010 as
proportionately more income was earned in higher tax jurisdictions.
Operating cash flow prior to working capital changes was $70 million ($0.19 per
share) for the three months ended October 31, 2011 compared to $88 million
($0.24 per share) in the same three months of 2010. Free cash flow was negative
$27 million in the quarter due to timing of growth capital projects.
New Crop Update
Positive harvest conditions in both South Australia and Western Canada should
provide strong volumes for Viterra's grain handling and marketing operations in
fiscal 2012. In South Australia, harvest is virtually complete and the
Australian Bureau of Agricultural and Resource Economics and Sciences ("ABARES")
estimates production for the state of South Australia at 7.9 million tonnes,
which exceeds the ten-year average of 6.2 million tonnes by 27%. Given this
production estimate, the Company forecasts fiscal 2012 receipts of 6.5 to 6.8
million tonnes into its southern Australian grain handling network. This is in
addition to approximately 1.8 million tonnes of carry-in stocks from fiscal
2011.
The western Canadian harvest was essentially complete by the end of October
2011. Favourable conditions throughout much of Western Canada during the growing
season led to significant gains in quality and yields, and offset the effects of
unseeded acreage in the region. According to Statistics Canada, western Canadian
production of the six major grains was 49.3 million tonnes during the 2011
harvest season. This represents a 10% increase over the 2010 production figure
of 45.0 million tonnes and is consistent with historical production from this
region. Given this production, the Company forecasts western Canadian industry
receipts for fiscal 2012 of 31.0 to 33.0 million tonnes, which is in line with
historical averages.
Outlook
"We have consistently grown revenue, EBITDA, earnings per share and cash flow
return on assets, and we remain focused on increasing shareholder value," stated
Mr. Schmidt. "To do this, we will continue to optimize the performance of our
existing asset base and pursue accretive growth opportunities as they arise. We
will also maintain a strong balance sheet to provide us with flexible access to
low cost capital. These priorities support our strategic vision to ensure
Viterra remains a leading agri-business company, providing key agricultural
ingredients to a growing world population."
Grain Handling and Marketing
Strong fundamentals are expected to hold for global grain commodity markets. In
2012, stocks to use ratios for wheat and coarse grains are expected to remain
tight compared to historical averages, with the USDA projecting stocks to use
days of about 74 days at the end of the crop year.
Global trade in wheat and coarse grains is projected to increase by over 30%
over the next decade. This rise in global trade will be fueled mainly by
emerging market demand, and supplied largely by origination from the Black Sea
region. Russia and Ukraine are expected to increase their exports of wheat and
coarse grains by nearly 40% over the next decade.
These strong fundamentals in the global trade of grain commodities, combined
with Viterra's risk management practices and origination capabilities, add
stability to the Company's grain handling and marketing operations. These should
continue to ensure that Viterra's underlying grain handling and marketing
pipeline is relatively insulated from the effects of macro-economic difficulties
caused by sovereign debt concerns in the Eurozone and ongoing tepid growth
prospects in the U.S. economy.
Viterra remains optimistic that the industry will see relatively strong volumes
in fiscal 2012 as robust demand and solid prices are expected to motivate
farmers to actively market their grains through the next crop year. The Canadian
Wheat Board ("CWB") is forecasting an export target of 18.0 million tonnes of
wheat and barley out of Canada for the upcoming crop year compared to 15.8
million tonnes for the 2011 crop year. The Company concurs with this estimate
given recent western Canadian production estimates.
Viterra estimates its global pipeline margin for fiscal 2012 will range from $38
to $41 per tonne, an increase from the $37 per tonne generated in fiscal 2011.
The increase primarily reflects increased grain marketing activity, increased
blending and special crop handling in the North American operations and
increased storage and handling fees in its Australian operations.
As of August 1, 2012, the CWB will no longer have a marketing monopoly on the
sale of wheat, durum and barley for export and human consumption in Western
Canada and growers will have the freedom to market these grains to buyers of
their choice. Despite a legal challenge from opponents of the legislation,
Viterra remains confident that there will not be any delay to the implementation
of the Marketing Freedom for Grain Farmers Act. In this new regulatory
environment, Viterra expects to increase its earnings by attracting additional
volumes and optimizing its operational efficiencies. Viterra expects to begin
realizing modest benefits in the fourth quarter of 2012, with more significant
impacts in 2013. In fiscal 2014 and beyond, the Company anticipates its EBITDA
to increase by $40 million to $50 million per annum. This guidance is based on
the assumption of an increase in consolidated global pipeline margin of $2.00 to
$2.50 per tonne, which includes a 1.0% to 2.5% market share increase. Viterra is
well prepared for this new environment with assets, people and a global
marketing network in place and therefore does not expect to incur any additional
growth capital expenditures to achieve this earnings benefit. Additional grain
purchases will require $150 million to $200 million of incremental working
capital, which will be provided by operating cash flows and existing credit
facilities.
Agri-products
Fundamentals for the Agri-products segment are expected to remain strong into
fiscal 2012. Historically high grain pricing should continue to drive solid
returns for producers and demand for crop inputs. In addition, demand for crop
inputs is expected to benefit from increased seeded acreage in Western Canada
and additional canola acres.
In Western Canada, the majority of the 6 to 8 million acres which were affected
by excess moisture in the spring of 2011 are expected to return to production in
the upcoming season. Assuming typical weather for the upcoming spring season,
the Company is forecasting the western Canadian seeded acreage will total
approximately 57 to 59 million acres in 2012, an increase of about 8% to 10%
from last season. Canola acreage is estimated to range between 18.5 to 19.5
million acres in 2012 and potentially exceed the previous record of 18.5 million
acres set in the previous year.
Demand and pricing for fertilizer products are expected to be solid throughout
fiscal 2012 due to historically high grain commodity prices and increased
nutrient requirements from excess moisture in the last two years. To complement
these positive demand fundamentals, western Canadian natural gas costs are
expected to remain relatively low throughout fiscal 2012, which positively
impacts the Company's fertilizer manufacturing margins. For fiscal 2012, the
Company expects its fertilizer margin to range between $100 and $120 per tonne.
This estimate assumes typical spring and fall fertilizer sales volumes, stable
natural gas pricing and continued strong grain prices.
Processing
Solid contributions from the global processing operations are expected in fiscal
2012 as procurement advantages from the Company's global commodities pipeline
and other efficiency initiatives are expected to mitigate the short-term
challenges presented by macro-conditions in some of this segment's operating
environments.
Viterra believes strong demand for healthy and economical pasta and oat products
will continue, supported by uncertainty in the U.S. economy. The Company expects
that contributions from its oat and pasta operations will remain consistent with
historical levels in fiscal 2012 as margins will be preserved by effective
procurement strategies, improved product mix and operational efficiency
initiatives.
Contributions from the canola processing operations are expected to improve in
fiscal 2012 as the Company pursues niche marketing of its specialty oil products
from the facility in Western Canada and adds incremental volumes from its
facility in southern China. The 680,000 tonne processing facility, which was
commissioned in the latter part of fiscal 2011, is expected to reach full
production capacity in the middle of fiscal 2012.
Global malt markets are expected to remain challenged through much of fiscal
2012 due to sluggish beer sales in mature economies. However, the Company
remains confident in the long-term outlook for this industry. For Viterra's malt
operations in Australia, the Company believes that margins in fiscal 2012 will
remain consistent with the prior year. Volumes are expected to increase in
fiscal 2012 due to the start up of the highly efficient malt plant near Sydney,
Australia in the first half of the fiscal year.
Viterra is estimating a combined food processing margin for fiscal 2012 of $90
to $110 per tonne, down from the $117 per tonne reported in fiscal 2011 due to
lower global malt margins and a change in product mix.
Challenges in feed products are expected to continue due to excess capacity
causing intense competition and margin pressure. The Company continues to take
steps to mitigate the effects of these issues.
Fourth Quarter and Annual Segment Highlights
The following table provides various key financial highlights for the three and
twelve months ended October 31, 2011 compared to October 31, 2010. The Company's
audited Consolidated Financial Statements and accompanying Management's
Discussion & Analysis ("MD&A") for the three and twelve months ended October 31,
2011 are incorporated fully into this news release. Readers are encouraged to
review the following pages for a full description of the Company's current
financial performance. Viterra will be hosting a conference call for interested
parties on January 18, 2012 at 7:30 pm ET (5:30 pm MT) to discuss its fourth
quarter and year-end financial results. Details are available on Viterra's
website, under "Newsroom" at www.viterra.com.
Fourth Quarter and Annual Segment
Highlights
(in thousands - except margins) Twelve Months
ended October 31, Better
2011 2010 (Worse)
----------------------------------------------------------------------------
Grain Handling and Marketing
Segment
Sales and other operating
revenues $ 8,453,941 $ 5,651,399 $ 2,802,542
Gross profit and net operating
revenues 888,704 724,127 164,577
EBITDA (1) 493,125 386,105 107,020
Operating Highlights (tonnes) :
North American Shipments 15,336 15,834 (498)
Australian Receivals 8,613 6,226 2,387
Total pipeline 23,949 22,060 1,889
Consolidated pipeline margin (per
tonne) $ 37.11 $ 32.83 $ 4.28
Agri-products Segment
Sales and other operating
revenues $ 2,380,025 $ 1,796,537 $ 583,488
Fertilizer 1,123,359 791,124 332,235
Crop Protection 388,229 384,186 4,043
Seed 237,421 207,395 30,026
Wool 469,689 264,899 204,790
Equipment sales and other
revenue 140,538 123,201 17,337
Financial Products 20,789 25,732 (4,943)
Gross profit and net revenue from
services 455,115 350,102 105,013
EBITDA (1) 244,099 153,822 90,277
Fertilizer volume (tonnes) 1,939 1,750 189
Fertilizer margin (per tonne
sold) $ 133.53 $ 97.36 $ 36.17
Processing Segment
Sales and other operating
revenues $ 1,608,857 $ 1,296,171 $ 312,686
Gross profit and net revenue from
services 204,500 184,338 20,162
EBITDA (1) 124,405 104,256 20,149
Food processing sales volumes
(tonnes)
Malt 529 562 (33)
Pasta 222 112 110
Oats 384 257 127
Canola 184 229 (45)
Average food processing margin
(per tonne sold) $ 116.94 $ 101.85 $ 15.09
Feed processing sales volumes
(tonnes)
North America 1774 1918 (144)
New Zealand 147 145 2
Average feed processing margin
(per tonne sold) $ 26.16 $ 32.09 $ (5.93)
Corporate Expenses
EBITDA (1) $ (159,723) $ (126,600) $ (33,123)
----------------------------------------------------------------------------
Fourth Quarter and Annual Segment
Highlights
(in thousands - except margins) Three Months
ended October 31, Better
2011 2010 (Worse)
----------------------------------------------------------------------------
Grain Handling and Marketing
Segment
Sales and other operating
revenues $ 2,279,256 $ 1,421,025 $ 858,231
Gross profit and net operating
revenues 168,878 186,916 (18,038)
EBITDA (1) 69,044 101,984 (32,940)
Operating Highlights (tonnes) :
North American Shipments 4,054 3,841 213
Australian Receivals 84 20 64
Total pipeline 4,138 3,861 277
Consolidated pipeline margin (per
tonne) N/A N/A N/A
Agri-products Segment
Sales and other operating
revenues $ 518,967 $ 325,062 $ 193,905
Fertilizer 258,467 163,495 94,972
Crop Protection 47,543 45,399 2,144
Seed 4,357 1,461 2,896
Wool 129,868 48,970 80,898
Equipment sales and other
revenue 72,175 57,605 14,570
Financial Products 6,557 8,132 (1,575)
Gross profit and net revenue from
services 105,811 72,773 33,038
EBITDA (1) 51,929 30,016 21,913
Fertilizer volume (tonnes) 411 370 41
Fertilizer margin (per tonne
sold) $ 159.78 $ 110.02 $ 49.76
Processing Segment
Sales and other operating
revenues $ 472,649 $ 368,305 $ 104,344
Gross profit and net revenue from
services 51,996 60,222 (8,226)
EBITDA (1) 31,521 36,420 (4,899)
Food processing sales volumes
(tonnes)
Malt 153 159 (6)
Pasta 58 57 1
Oats 100 94 6
Canola 66 49 17
Average food processing margin
(per tonne sold) $ 102.53 $ 130.98 $ (28.45)
Feed processing sales volumes
(tonnes)
North America 469 424 45
New Zealand 43 45 (2)
Average feed processing margin
(per tonne sold) $ 26.06 $ 28.15 $ (2.09)
Corporate Expenses
EBITDA (1) $ (41,916) $ (30,462) $ (11,454)
----------------------------------------------------------------------------
(1) See Non-GAAP Measures at the end of this news release.
Non-GAAP Measures
Adjusted EBITDA ("EBITDA") - Earnings before financing expenses, taxes, goodwill
impairment, amortization, (gain) loss on disposal of assets, integration
expenses, and net foreign exchange gain (loss) on acquisition and Adjusted EBIT
("EBIT") - Earnings before financing expenses, taxes, (gain) loss on disposal of
assets, integration expenses, and net foreign exchange gain (loss) on
acquisition are non-GAAP measures. Those items excluded in the determination of
EBITDA and EBIT represent items that are non-cash in nature, income taxes,
financing expenses or are otherwise not considered to be in the ordinary course
of business. These measures are intended to provide further insight with respect
to Viterra's financial results and to supplement its information on earnings
(losses) as determined in accordance with Canadian generally accepted accounting
principles ("GAAP").
EBITDA is used by Management to assess the cash generated by operations, and
EBIT is a measure of earnings from operations prior to financing costs and
taxes. Both measures also provide important management information concerning
business segment performance since the Company does not allocate financing
expenses, income taxes or other excluded items to these individual segments.
EBITDA to cash interest is defined as EBITDA divided by cash interest where cash
interest is net financing expenses, excluding refinancing costs less non-cash
financing expenses. The ratio is calculated on a rolling 12-month basis. This
measure is intended to assess interest coverage and the Company's ability to
service its interest bearing debt.
Total debt, net of cash and cash equivalents is used by Management to assess the
Company's liquidity position and to monitor how much debt the Company has after
taking into account its liquid assets, such as cash and cash equivalents. Such
measures should not be used in isolation of, or as a substitute for, current
liabilities, short-term borrowings, or long-term debt as a measure of the
Company's indebtedness.
Operating cash flow prior to working capital changes ("operating cash flow") is
the cash from (or used in) operating activities, excluding non-cash working
capital changes. Viterra uses cash flow provided by operations and cash flow
provided by operations per share as a financial measure for the evaluation of
liquidity. Management believes that excluding the seasonal swings of non-cash
working capital assists its evaluation of long-term liquidity.
Free cash flow is operating cash flow, net of capital expenditures, excluding
business acquisitions. Free cash flow is used by Management to assess liquidity
and financial strength. This measurement is also useful as an indicator of the
Company's ability to service its debt, meet other payment obligations and make
strategic investments. Readers should be aware that free cash flow does not
represent residual cash flow available for discretionary expenditures.
Cash flow return on assets ("CFROA") is calculated by the Company using
operating cash flow excluding pre-tax cash interest less sustaining capital
expenditures (net of proceeds) divided by average long-term assets plus average
non-interest bearing working capital. The measure is used to assess the
Company's ability to generate cash flow returns in relation to the Company's
weighted average cost of capital. It is the Company's view that there is no
comparable GAAP financial measure. The Company reports this ratio annually.
These non-GAAP measures should not be considered in isolation of, or as a
substitute for, GAAP measures such as (i) net earnings (loss), as an indicator
of the Company's profitability and operating performance or (ii) cash flow from
or used in operations, as a measure of the Company's ability to generate cash.
Such measures do not have any standardized meanings prescribed by GAAP and are,
therefore, unlikely to be comparable to similar measures presented by other
corporations. Reconciliations of each of these terms are provided in the table
below.
Forward-Looking Statements
This news release contains certain information that is "forward-looking
information", "forward-looking statements" and "future-orientated financial
information" (collectively herein referred to as "forward-looking statements")
within the meaning of applicable securities laws. The words "anticipate",
"expect", "believe", "may", "could", "should", "estimate", "plan", "project",
"intend", "outlook", "forecast", "likely", "probably" or other similar words are
used to identify such forward-looking information. Forward-looking statements in
this document are intended to provide Viterra security holders and potential
investors with information regarding Viterra and its subsidiaries, including
management's assessment of Viterra's and its subsidiaries' future financial and
operational plans and outlook. Forward-looking statements in this document may
include, among others, statements regarding future operations and results,
anticipated business prospects and financial performance of Viterra and its
subsidiaries, expectations or projections about the future, strategies and goals
for growth, expected and future cash flows, costs, planned capital expenditures,
anticipated capital projects, construction and completion dates, operating and
financial results, critical accounting estimates and expected impact of future
commitments and contingent liabilities. All forward-looking statements reflect
Viterra's beliefs and assumptions based on information available at the time the
statements were made. Actual results or events may differ from those predicted
in these forward-looking statements. All of the Company's forward-looking
statements are qualified by the assumptions that are stated or inherent in such
forward-looking statements, including the assumptions listed below. Although
Viterra believes that these assumptions are reasonable, this list is not
exhaustive of factors that may affect any of the forward-looking statements. By
its nature, forward-looking information is subject to various risks and
uncertainties as well as various assumptions and business sensitivities,
including those risks described in the Company's most recent Annual Information
Form ("AIF") in the "Canadian Regulation" and "Environmental and Sustainability
Matters" sections and those factors discussed in the Company's Management's
Discussion and Analysis for the year ending October 31, 2011 under the heading
"Risks and Risk Management", any of which could cause Viterra's actual results
and experience to differ materially from the anticipated results or expectations
expressed.
The key assumptions that have been made in connection with the forward-looking
statements include the following:
-- litigation against the Federal Government regarding the amendment and
repeal of the Canadian Wheat Board Act is resolved in favour of the
Government of Canada and there is no delay in the implementation of the
amendments;
-- western Canadian and southern Australian crop production and quality in
2011 and subsequent crop years;
-- the volume and quality of grain held on-farm by producer customers in
North America;
-- movement and sales of Board grains by the CWB;
-- the amount of grains and oilseeds purchased by other marketers in
Australia;
-- demand for and supply of open market grains;
-- movement and sale of grain and grain meal in Australia and New Zealand,
particularly in the Australian states of South Australia, Victoria and
New South Wales;
-- agricultural commodity prices;
-- general financial conditions for western Canadian and southern
Australian agricultural producers;
-- demand for seed grain, fertilizer, chemicals and other agri-products;
-- market share of grain deliveries and agri-products sales that will be
achieved by Viterra;
-- extent of customer defaults in connection with credit provided by
Viterra, its subsidiaries or a Canadian chartered bank in connection
with agri-products and feed product purchases;
-- ability of the railways to ship grain to port facilities for export
without labour or other service disruptions;
-- demand for oat, pasta, canola and malt barley products, and the market
share of sales of these products that will be achieved by Viterra;
-- ability to maintain existing customer contracts and relationships;
-- the availability of feed ingredients for livestock;
-- cyclicality of livestock prices;
-- demand for wool and the market share of sales of wool production that
will be achieved by Viterra's subsidiaries in Australia;
-- the impact of competition;
-- environmental and reclamation costs;
-- the ability to obtain and maintain existing financing on acceptable
terms; and
-- currency, exchange and interest rates.
The preceding list is not exhaustive of all possible factors. All factors should
be considered carefully when making decisions with respect to Viterra. Factors
that could cause actual results or events to differ materially from current
expectations include, among others, risks related to weather, politics and
governments, changes in environmental and other laws and regulations,
competitive factors in agricultural, food processing and feed sectors,
construction and completion of capital projects, labour, equipment and material
costs, access to capital markets, interest and currency exchange rates,
technological developments, global and local economic conditions, the ability of
Viterra to successfully implement its strategic initiatives and whether such
strategic initiatives will yield the expected benefits, the operating
performance of the Company's assets, the availability and price of commodities
and regulatory environment, processes and decisions. Additional information on
these and other factors is available in the reports filed by Viterra with
Canadian and Australian securities regulators. Readers are cautioned not to
place undue reliance on this forward-looking information, which is given as of
the date it is expressed in this news release or otherwise, and not to use
future-oriented information or financial outlooks for anything other than their
intended purpose. Viterra undertakes no obligation to update publicly or revise
any forward-looking information, whether as a result of new information, future
events or otherwise, except as required by law.
About Viterra
Viterra provides premium quality ingredients to leading global food
manufacturers. Headquartered in Canada, the global agri-business has extensive
operations across Canada, the United States, Australia and New Zealand, as well
as a growing international presence that extends to offices in Japan, Singapore,
China, Vietnam, Switzerland, Italy, Ukraine, Germany, Spain and India. Driven by
an entrepreneurial spirit, Viterra operates three distinct business segments:
Grain Handling and Marketing, Agri-products and Processing. Viterra's expertise,
close relationships with producers and superior logistical assets allow the
Company to consistently meet the needs of the most discerning end-use customers,
helping to fulfill the nutritional needs of people around the world.
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