Legumex Walker Loss Narrows

TORONTO - May 15/14 - SNS -- Legumex Walker Inc. reported a net loss of CDN $6.802 million on sales of $128.535 million during the first quarter ending March 31, compared to a net loss of $6.873 million on sales of $87.316 million during the same three-month period last year.

The company's special crops division shipped 105,500 metric tons (MT) of product during the quarter, up from 97,500 MT last year. Days in receivable improved to 48 days from 60 days at March 31, 2013 and days in inventory improved to 80 days from 93 days.

The oil seed processing division, Pacific Coast Canola (PCC) sold 52,700 of product during the quarter and crushed 56,400 MT of canola, operating at 61% of capacity.

In releasing the quarterly financials, Legumex Walker noted it sold 43,000 MT of special crops in April 2014 and crushed 22,600 MT of product, representing 74% of operating capacity.

Pacific Coast Canola entered into an agreement with Dow AgroSciences Canada Inc. under which it has been granted a license to process Nexera canola and produce and sell Omega-9 Quality Canola Oil at its facility in Warden, Washington.

Rail congestion issues in North America increased Legumex Walker's in-transit finished goods and resulted in shipping and invoicing delays during the quarter affecting the Company's current liabilities as did an increase in customer prepayments for future sales.

Joel Horn, President and Chief Executive Officer, Legumex Walker, Inc. said, "Utilization at PCC improved from the previous quarter to more than 60%, held back only by the continued limited availability of feedstock due to North American rail congestion, which has already started to abate. Combined with our expanded truck delivery program and the receipt of additional unit trains, feedstock availability improved in the first part of the second quarter such that we were able to run the facility at almost 75% capacity in April.

"Increased availability of local seed in the third and fourth quarters with the harvests of the local winter and spring planted canola should enable us to ramp to full production in the second half of the year."