Viterra sees strong year despite smaller crops
SASKATOON, Saskatchewan, June 23 (Reuters) - Viterra (VT.TO) Chief Executive Mayo Schmidt said on Tuesday he doesn't expect bad spring weather to produce a Canadian crop disaster and hasn't altered his expectation of a strong finish to the fiscal year for the grain handler and farm supply company.
"There's still, I think, potential for normal or slightly less than normal (production) if the timely rains come," Schmidt said in an interview with Reuters from Calgary, Alberta. The number of frost-free days in summer will also be critical for the late-developing crop, he said.
"We don't see a major weather event at this point...We'll still see very very strong results but I wouldn't expect they would mirror necessarily step for the step the year over year."
Crops are slow to develop in Western Canada because of cool spring weather, frosts in early June and a drought that has become more severe since Viterra released its second-quarter earnings June 10. The Canadian Wheat Board expects production of major crops in Western Canada to drop by almost one-fifth.
Schmidt also said Viterra, which has agreed to buy Australia's ABB Grain Ltd. ABB.AX for $1.2 billion pending approval by ABB shareholders, wouldn't close a significant number of grain delivery points in Australia if the deal proceeds. Viterra will also look to make further acquisitions in Australia in the next one to three years, he said. (Reporting by Rod Nickel; editing by Peter Galloway)
