AGT Adjusted Earnings Improve

TORONTO - May 13/13 - SNS -- Alliance Grain Traders Inc. (AGT) reported adjusted net earnings of $5.1 million on sales of $276.4 million for the first quarter ending March 31, compared to an adjusted net loss of $2,6 million on sales of $197.4 million during the same three month period last year.

In releasing its financial results, Murad Al-Katib, President and CEO of AGT, said "Export statistics from Canada and the U.S. appear to be supporting our position that pulses and staple foods markets are continuing to normalize, with import demand improving. Production shortfalls projected for India may represent a demand catalyst that we expect may continue through the second half of the year.

"For AGT, the significance of recovery of lentil markets is in margin improvement potential as well as the boosting of utilization for Canada and Turkey. The underutilization of our assets or the change in product mix we saw in 2012 in both of these significant production origins to react to temporarily impaired lentil demand certainly led to the earnings compression. As pulse demand improves, so does our utilization and with it our earnings due to the high fixed cost nature of our business.

"Weather conditions have improved, allowing for the gradual progression of seeding activities in North America. However, rationalization of acres is being reported by some sources which may result in lower production estimates in Canada and the U.S. This may also provide positives with respect to rebalancing supply and exports, which have been misaligned recently. Lower supply, decreases in carry-in and increased import demand may also have the result of correcting global pulse prices, as well as providing positive impact to our earnings," Al-Katib added.