SWP Reports Small Annual Profit

REGINA - Oct 12/06 - SNS -- The Saskatchewan Wheat Pool (SWP) reported net earnings of CDN $13.5 million gross revenue of $602.1 million during the fourth quarter ending July 31, compared to a net of $29.5 million on revenues of $546.7 million during the same three month period last year.

This lifted the company's fiscal year to date results back into the black, with SWP recording a $500,000 net on gross revenues of $1.6 billion, compared to a net of $12.1 million on revenues of $1.4 billion the previous fiscal year. Fourth quarter results were hurt by one-time charges of $12.1 million.

Reviewing highlights of the quarter, the SWP said grain shipments in the final quarter of 2006 were up 6.8% over the previous year at 2.044 million metric tons (MT). Non-board grain shipments rose 17.3% to 853,000 MT; while Canadian Wheat Board shipments were up[ 0.3% at 1.191 million MT.

The Pool's gross margin per ton rose $3.04 to $21.90 MT in the final quarter of fiscal 2006 compared to the $18.86 MT generated in the same period last year (which excludes $1.53 MT in one-time items recorded in the final three months of fiscal 2005).

Producer deliveries to the Pool's primary elevator network were up 16.2% over last year's fourth quarter to 2.146 million MT.

SWP shipped 1.355 million MT through its Vancouver and Thunder Bay export terminals in the final three months of fiscal 2006, 16.9% above the 1.159 million MT shipped in the prior year period. Clearances through Vancouver rose 24.8% to 835,000 MT; while shipments through Prince Rupert rose 14.1% to 227,000 MT; and clearances at Thunder Bay rose 6.1% to 520,000 MT.