Viterra says volumes and earnings to rise

Company News

Dual listed grain handler Viterra (ASX:VTA, TSE:VT) has forecast its volumes and earnings to rise as a result of new regulations for grain marketing in Canada.
 
The company believes it will start to benefit in the fourth quarter of 2012 and by 2014 and beyond generate an additional $AUD38 million to $AUD48 million in annual EBITDA. 

This guidance assumes the company’s market share will increase by between 1 - 2.5 per cent.

Viterra says it does not expect to incur any extra growth capital expenditure to achieve this earnings benefit.

Extra grain purchases will need up to $AUD190 million of working capital which Viterra says will be funded by operating cash flows and existing credit facilities.

In the year to October 31, 2010 Viterra posted a net profit of $145 million.


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