WIT Announces Strong First Half Performance

The first half of Fiscal 2008 was profitable for Weyburn Inland Terminal Ltd., driven by grain handling and strong crop input sales, as shown in the Company’s  second-quarter report.

WIT reported after-tax earnings of $ 3,674,000 ($3.60/share) for the January-to-June period — up from $2,807,000 ($2.85/share) in the same period in Fiscal 2007.  A smaller 2007 harvest and solid grain movement for CWB prior to the end of last December reduced the cereal grain available for the Company to move in the first half of 2008, however non-CWB grain marketing and shipping made up a significant amount of the shortfall and gave the Company the best first-half  results in the past 10 years.  The Company had solid performance across all business operations, but especially from the crop inputs and Vigro businesses.

"The efficiencies that have been built into the terminal’s grain handling operation continue to benefit our customers, and their continued support across our other business lines has allowed for excellent overall performance ” said Company President Claude Carles.  “While many companies charge different handling fees to farmers who have different crop qualities in different market areas, WIT has maintained our focus on providing high-value, low-cost services to all our farmer customers.  We believe the focus on farmers’ needs that comes from being farmer owned and controlled will continue to pay off for both customers and shareholders in the long term.”

WIT also paid out a total of $413,000 in freight and dockage premiums to producers in the first half of 2008, and the Company continues to file the lowest handling tariffs and be the only major grain handling company to offer net weight tariffs. This results in consistently lower costs to all farmers in the Weyburn market area for elevation, cleaning, and shipping of their grain.  Working capital at June 30 was $17,622,000, even after a semi-annual dividend payment of $2,011,000 in March of 2008.

“Our receiving system upgrade, which will double our grain receiving speed, will be complete in the next few weeks.  Our staff will continue to work closely with customers through the harvest season, providing delivery opportunity and creating blending and drying programs as required to improve the value of our farm customer’s grain” said CEO Rob Davies.  “Our willingness to work with our customers has shown in improved deliveries of both CWB grains and oilseeds over the past years.  Our experienced grain buying and marketing staff will continue to work with customers to create plans to maximize the value of their crop, we will continue to aggressively market flax and canola, and our professional agronomists can help with crop management through harvest.”  

There is optimism for the remainder of Fiscal 2008, noted Carles. “Even though harvest has been delayed, crops generally appear to be at least average in our area.  Old crop grain inventories are low, and we expect to have good space at the Terminal for harvest deliveries.  Our staff, the size of our facility, and our ability to blend grain will allow us to work with our customers this fall to maximize their returns once again.  Our local presence helps keep us in touch with our customers and shareholders, and we look forward to continuing to grow for the benefit of both.”

WIT is a farmer-owned and farmer-directed grain company located on the CP Rail Soo Line near Weyburn, Saskatchewan. Since its beginning in 1976, ‘The Terminal’ has been at the forefront of change in the industry, leading the way to help improve the overall efficiency of Canada’s grain-handling system. The philosophy and goals of the company are summed up in its mission statement: Profitability Through Service, Innovation and Integrity.