UPDATE 1-Viterra says ABB acquisition on track

* Says ABB acquisition based on long-term earnings

* Expects average grain marketings in the 2009/10 crop year

July 8 (Reuters) - Canadian grain-handling company Viterra Inc (VT.TO) said its acquisition of ABB Grains Ltd (ABB.AX) remains on track, a day after the Australian company cut its profit view hurt by lower demand.

"Our offer was not based on one year of earnings, but rather the long-term cycle of earnings beginning in 2010 and beyond. The strategic rationale remains compelling," Viterra Chief Executive Mayo Schmidt said in a statement.

Crop prospects in South Australia have been supported by good rainfall and growing conditions and Viterra remains committed to its acquisition of ABB, the company said.

ABB had lowered its annual profit outlook, citing slower demand for malt by Asian customers and weaker sales of fertilizer and agriculture chemicals.[ID:nSYU006800].

In April, Viterra agreed to buy the ABB in a $1.2 billion stock-and-cash deal, to give the company better access to Asian markets.

Viterra also said it expects average grain marketings in the 2009/2010 crop year based on current crop conditions and a significant carryout of production from 2008/2009.

Viterra shares, which have gained about 4 percent in a month, were down 7 Canadian cents at C$9.04 in afternoon trading on the Toronto Stock Exchange. (Reporting by Krishna Chaithanya in Bangalore; Editing by Unnikrishnan Nair)