Viterra (ASX: VTA,TSX: VT) continues to deliver records, this time posting record earnings before interest, taxes, depreciation and amortisation (EBITDA) of A$185 million for the second quarter of fiscal 2012.
The record marks a 43% increase over the $129 million EBITDA posted in the second quarter of fiscal 2011.
Shareholders will be pleased to hear Viterra has declared a second semi-annual cash dividend for the year of C$0.075 (A$0.073), payable on 26 July 2012.
Net earnings for the company have more than doubled to $67 million ($0.18 per share) compared to the $30 million ($0.08 per share) reported in the same three month period in the last financial year.
Agri-Products achieved record EBITDA of $64 million driven by strong fertiliser sales volumes and pricing, while Grain Handling and Marketing’s EBITDA increased 14% to $141 million compared to the same period in the 2011 fiscal year.
Favourable global agricultural fundamentals supported strong shipping volumes and higher grain handling margins.
Meanwhile, EBITDA for the Processing division improved 33% to $28 million due to improved pasta and canola contributions.
The outlook remains strong for Viterra’s operations with solid agri-commodity pricing in North America expected to lead to a continued draw down of on-farm stocks, and ongoing solid demand from key export markets.
Fundamentals for the Agri-Products segment are also expected to remain strong in the second half of fiscal 2012 due to relatively strong commodity prices that should continue to drive solid returns for producers and their demand for crop inputs.
Glencore Takeover
Earlier this year Viterra signed a definitive agreement with Glencore International under which Glencore has agreed to acquire all of the issued and outstanding shares of Viterra for C$16.25 per share.
The takeover has received the unanimous approval of the Viterra board and last week received the approval of the Australian Competition and Consumer Commission.
The transaction is expected to deliver significant overall benefits to grain farmers by providing them access to Glencore's global distribution channels and increase their ability to export their product into international grain and oilseeds markets.
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