27th March 2003
|
Media Release
|
Nufarm reaffirms full year profit outlook
|
Nufarm Limited today reaffirmed its confidence of achieving profit growth for the full year, despite the impact of drought conditions on its first half crop protection sales.
The company today reported a loss of $3.9 million for the six months ending January 31, 2003. Nufarm’s earnings are heavily weighted to its second half, coinciding with the key planting and cropping periods in Australia and the company’s other global markets.
Nufarm’s managing director, Mr Doug Rathbone, said the company will achieve growth on its 2002 full year profit of $56.8 million if reasonable rainfalls are recorded in key cropping regions in Australia over the next few months.
“The late summer rains generated very strong Australian sales for the company in February, with the strong sales activity continuing into March and the weather outlook now looking very positive.
“While the severe drought conditions led to the Australian business achieving only 64% of budgeted sales in the first six months, average rainfall between now and the end of the company’s financial year (July) will encourage a very strong level of broad acre cropping, which should see a return to forecast sales by year end,” Mr Rathbone said.
Following its acquisition of the Crop Care Australasia business late last year – and the first full year of Roundup glyphosate sales – Nufarm is forecasting its Australian crop protection business to increase full year sales by some 50% on 2002.
The company is also anticipating sales growth from its branded product business in New Zealand, Asia, North America and Europe.
Mr Rathbone said the company’s new business in Germany – established after the acquisition of product rights from Bayer late last year - will generate its first sales over the next few months. A number of new product registrations and commercial launches in other markets will also boost the full year result.
The first half loss of $3.9 million compares with a profit of $5.6 million for the same period last year. Global sales for the interim period were $509 million, 8% down on last year’s sales. Directors announced an unchanged interim dividend of 7 cents (fully franked).
|
-- end --
Further information:
Robert Reis
Corporate Affairs
Phone (61 3) 9282 1177
|
Home
News & Press Releases
