Agricore United Posts Q4 Loss

TORONTO - Dec 15/05 - SNS -- Agricore United reported a net loss of CDN $12.995 million on revenues of $565.894 million during the fourth quarter ending October 31, compared to a loss of $23.14 million on sales of $612.408 million during the same three month period last year.

This trimmed profits from earlier in the fiscal year, with the result the company only posted a profit of $12.514 million on revenues of $2,755.279 million during the 2005 fiscal year, compared to a loss of $10.166 million in revenues of $3,048.135 million during the previous fiscal year.

"Both the livestock services and crop inputs side of our business improved as expected in 2005, overcoming several years of particularly adverse weather and market conditions," says Brian Hayward, Chief Executive Officer. "We have stuck to business fundamentals - control costs, maximize market share and margins - and with the inevitable improvement in business conditions, we have been able to capitalize on our operating leverage and favorable tax position."

Agricore United maintained a 35% market share of total industry shipments of the six major grains while also realizing average margins of $21.26 per metric ton (MT), comparable to the $21.34 MT earned in 2004.

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