BUSINESS NEWS: Viterra Announces Year-End Financial Results

Viterra has announced the Company's fiscal 2009 financial results. The Company reported a sales and operating revenue figure of $6.6 billion, compared to $6.8 billion in 2008. Check out an upcoming issue of ihr magazine for more on these financial results.

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Viterra Highlights Year-End Results

CALGARY, ALBERTA--(Marketwire - Jan. 21, 2010) - In fiscal 2009, Viterra's (TSX:VT) (ASX:VTA) consolidated sales and other operating revenues reached $6.6 billion compared to $6.8 billion in 2008. The Company shipped 17.0 million tonnes of grains and oilseeds, an all-time record for its North American operations. Declining commodity pricing had the greatest impact on results for 2009, with fertilizer pricing and margins down substantially from 2008.

For the year ended October 31, 2009, Viterra generated EBITDA (see Non-GAAP Measures for the definition) of $323.7 million, which compares to $532.6 million last year. Excluding a first quarter fertilizer inventory write-down, EBITDA was $351.8 million for 2009.

Viterra's full year results reflect record grain shipments, a leveling of gross margins per tonne and the impact on contributions from a significant decline in fertilizer margins. Viterra's quarterly and annual results also include contributions from Viterra's Australian operations for the period from September 24, 2009 to October 31, 2009 (38 days).

Viterra's net earnings for the fiscal year were $113.1 million (or $0.45 per share) compared to $288.3 million (or $1.31 per share) last year, a good result in a year in which the industry experienced dramatic changes in fertilizer pricing. For the fiscal year ended October 31, 2009, the Company generated cash flow provided by operations (see Non-GAAP Measures) of $223.4 million, or $0.89 per share and free cash flow of $148.1 million which compares to $400.7 million in 2008. (Viterra defines its free cash flow as cash flow provided by operations less capital expenditures, but prior to working capital changes - see Non-GAAP Measures).

Mayo Schmidt, President and Chief Executive Officer, commented on the year, "Fiscal 2009 was a defining year for Viterra, one in which we significantly broadened our global presence through the acquisition of ABB Grain Ltd in Australia. We executed a $1.4 billion transaction and, as promised, retained a very strong capital structure with over $1 billion of cash and short-term investments on our balance sheet. Approximately $800 million is available for future growth initiatives. We completed the year as a more geographically diverse company, yet we maintained the financial stability that has become our hallmark. It is this discipline that will allow us to explore additional opportunities as we move forward, while being careful stewards of the financial resources entrusted to us by our
shareholders and lenders."

Viterra's total debt-to-capital ratio at October 31, 2009 remained strong at 31%. The Company had no cash drawings on its $800 million North American line of credit at year-end, and had approximately $597 million drawn on the AUD $1.2 billion operating facility that funds the Australian and New Zealand businesses.

Source: Exerpted from Viterra press release