Agricore Returns to Black

WINNIPEG - Sep 7/06 - SNS -- Agricore United reported net earnings of CDN $56.014 million on revenues of $1,177.467 million during the third quarter ending July 31, compared to a net of $48.287 million on revenues of $1,021.251 million during the same three month period last year.

This lifted net earnings for the first nine months of the current fiscal year to $27.399 million on revenues of $2,291.667 million, up slightly from a net of $25.509 million on revenues of $2,209.351 million the previous fiscal year.

Explaining the improvement in financial results, Agricore United said it "shipped 12% more grain compared to the same period a year ago at a higher margin per (metric) ton (MT)" and experienced "improved livestock segment performance."

The company said a major contributor to the improved earnings results was a 12.1% increase in grain handling volume during the nine months ending July 31. However, that increase lagged the 15.4% gains reported across the industry.

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