Triden,I'm not aware of any plans for SWP to list on the NYSE however your quess is as good as mine.In my view its not likely to happen in the near term because the share performance has not been up to investors expectations.The close to-day at $13 is in line with my earlier comments re:poor 4th qtr.The press release out to-day confirmed my earlier analysis:BIG CANADA GRAIN HANDLER FACES PROFIT PRESSURES;
By Irene Marushko
WINNIPEG, Sept 16 (Reuters) - Saskatchewan Wheat Pool (Toronto:SWPb.TO - news), Canada's
largest grain handler, will likely struggle with lower profits for some time yet as the industry battles
consolidations and flattening wheat exports, industry analysts said on Wednesday.
Late on Tuesday, SaskPool warned investors that earnings for the fourth quarter and the fiscal year ended
July 31 would be ''significantly below analysts' expectations.''
It also announced it would consolidate operations by closing some 225 grain elevators at 170 locations
across the province of Saskatchewan.
''We would look for analysts to revise current estimates before seeing any positive surprises,'' said
Christine Farkas, equities analyst at Merrill Lynch, in New York.
''In the near term I think the company is in a challenging environment where expansion, costs and
uncertainties in grain sales are hurting them,'' Farkas said.
SaskPool, due to release its earnings report next Tuesday, is the top weighted of three food processors
listed on the Toronto Stock Exchange's 300 Composite Index. It listed its B-class shares on April 2, 1996
and they closed that day at C$14.
SaskPool shares fell C$1 to C$12.90 on moderate volume on Wednesday after touching a record low of
C$11.25 earlier in the session.
Walter Schroeder, president of Dominion Bond Rating Service, said the lower earnings report was no
surprise to the industry.
''It's perfectly normal for the industry, which is volatile by nature. This is a normal event,'' he said by
telephone from Toronto. ''They had to close the elevators anyway and Saskatchewan Wheat Pool is
catching up on closures.''
Canada's grain industry has been restructuring in recent years in response to changing transportation routes
and dwindling demand for Canadian wheat abroad.
Two of the top six grain handlers on the Canadian Prairies will merge into a company called Agricore next
month, a move designed to stave off competition and to take on SaskPool, which as of last year owned
374 elevators and had 1.7 million tonnes of storage capacity.
SaskPool said lower-than-expected returns from grain and farm supply operations, plus a pre-tax
restructuring charge of $19.4 million, would flatten fourth-quarter earnings.
''For the fiscal year ended July 31, 1998, earnings per share, before the charges is estimated at C$0.95 to
C$1,'' a company statement said, adding SaskPool would save C$9-C$11 million in costs every year once
the elevators were closed.
Analysts had forecast earnings per share for the fiscal year in the C$1.15 to C$1.20 range.
Lyle Spencer, SaskPool's chief financial officer, said the closures had pressured earnings.
''We expect the operating earnings to increase by 15-20 percent next year,'' he told Reuters from the
company's head office in Regina.
A Winnipeg-based grain market analyst said the elevator reduction, which includes a C$270 million plan to
construct 22 high-throughput Prairie grain handling and farm supply centers, would work in SaskPool's
favor.
''Right now it's a question of, 'Let's do this now and fix it so there is a better price overall','' said the
analyst, who asked not to be named. ''Share prices are down right now so it might be a good time to do
it,'' he said.
He said the company's share price was being hit by lower commodity prices and a weaker stock market.
''It might be a good time to do this, so that when the stock markets come out of their tailspin and
commodities prices start rebounding, they are in a stronger position to increase their earnings,'' he said.
($1 = $1.51 Canadian)
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