SWP Reports Smaller Q1 Loss

VANCOUVER - Dec 13/05 - SNS -- The Saskatchewan Wheat Pool (SWP) reported a net loss of CDN $7,654,000 on gross revenue of $273.957 million during the first quarter ending October 1, an improvement on last year's opening quarter loss of $15.63 million on sales of $228.706 million.

The company explained, "Larger crop production in Saskatchewan, together with improved margins in Grain Handling and Marketing and Can-Oat Milling, allowed the SWP to cut its net loss for the quarter by 50%."

However, because crop quality is much better than last year, there will be fewer opportunities to blend lower grade product into higher grade product and improve returns from offgrade grain.

"While crop quality is expected to limit the full margin potential in the grain handling business this year, the larger than average crop in Saskatchewan and excellent moisture conditions throughout the Prairies provide the opportunity for the SWP to improve its year-over-year financial performance in fiscal 2006. However, good growing conditions next spring will be a key factor in achieving this objective, since the majority of the company's annual earnings and cash flows are typically generated in the fourth quarter."

Subscribers can read the full text of the article by Clicking here