Fert sales up at Viterra despite cold April

Viterra reported increased fertilizer sales during the second quarter ending April 30, 2008, to C$106.9 million, up from the year-ago $52.4 million. The company cited the expanded retail network due to the 2007 Agricore United acquisition, as well as higher fertilizer prices and volumes. The acquisition boosted the retail network to 275 facilities from 100. In addition, Viterra now owns all of Westco, a fertilizer wholesaler and manufacturer.

Viterra said cold weather in April delayed the timing of the spring season, pushing a greater proportion of anticipated sales volume into the third quarter. Producer prepayments for spring agri-products remained high as of April 30 at $265.1 million, compared to the year-ago $59.0 million. Viterra said that it delivered anhydrous ammonia safety training to 6,300 farmers and subsequent to the quarter’s end, extended its hours of operation for this product to 24 hours, 7 days a week to support the compressed selling season.

Six-month fertilizer sales were $262.3 million, up from the year-ago $124.1 million.

Sales of other agri-products were also up. Most notably, crop protection sales were up due to higher gyphosate prices due to increased global demand. Seed sales were up due to greater wheat demand. In addition, equipment sales were up due to farmers buying more storage bins for their on-farm fertilizer storage.

Company-wide, Viterra had second-quarter net income of $33.6 million ($.16 per share) on sales of $1.5 billion, versus the year-ago $9.2 million ($.10 per share) and $401.5 million. Six-month net income was $74.8 million ($.37 per share) on sales of $2.8 billion, compared to the year-ago $17.1 million ($.19 per share) and $849.1 million.

Source: Viterra; figures in thousands