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GrainCorp's turnaround: bank in the black
November 25, 2009 - 10:42AM

GrainCorp has turned its annual earnings around and into the black after good rains boosted corp receivals and the company cut some costs.

Net profit for the year ended September 30 was $63.16 million, compared to a loss of $19.94 million in the previous year.

The result was just above its guidance for a profit between $61 million and $63 million.

Grain receivals totalled 10.7 million tonnes during fiscal 2009, with 5.2 million tonnes of grain exports handled and bulk wheat exports adding up to 1.3 million tonnes.

But managing director Mark Irwin said grain receivals will be lower in fiscal 2010, due to different seasonal conditions.

"This season we anticipate eastern Australian grain exports will be dominated by grain from Victoria," he said on Wednesday in a statement.

"This means the grades being accumulated at port will be different to last season and the time taken to accumulate cargos is likely to be shorter, leading to lower port related earnings."

GrainCorp's fiscal 2010 year-to-date grain receivals currently stand at around 4.5 million tonnes.

"We estimate we will receive between eight and nine million tonnes of winter and summer grains for the full financial year," Mr Irwin said.

"This is a reduction from last financial year, and demonstrates the impact of continued drought conditions in parts of eastern Australia."

Mr Irwin said the company expects to lift between three and four million tonnes of export grain for customers, and between 0.9 and 1.4 million tonnes of non-grain exports, at its port terminals.

GrainCorp will provide an update on its grain receivals, grain exports, malt operations and give profit guidance at its February annual general meeting.

More to come