Ann: FORECAST: NFF: Market Update

• Release Date: 24/01/14 13:35
• Summary: FORECAST: NFF: Market Update
• Price Sensitive: No
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					NFF
24/01/2014 11:35
FORECAST

REL: 1135 HRS Nufarm Finance (NZ) Limited

FORECAST: NFF: Market Update

Nufarm Limited today confirmed that it expects to generate a first half
result within the previous guidance range provided at the AGM in early
December 2013 of EBIT $50 million - $60 million, albeit towards the lower end
of that range.

Unfavourable seasonal conditions persisted in Australia during December and
January with hot and dry weather in key growing regions.  This has resulted
in unusually low sales activity and depressed margins. The first half
performance of Australia is broadly expected to be in line with the first
half of the previous year.  Management continues to assess options for
improving the profitability of the Australian business and the returns
generated during periods of unfavourable climatic conditions.

While Australia will contribute a lower than expected result in the first
half, other parts of the business are performing strongly.  Brazil, in
particular, has continued to experience very positive business conditions and
the South American business will post an excellent first half result.

The European, North American and Asian businesses are tracking in line with
expectations, with the major Northern Hemisphere seasons typically getting
underway in March.

While the seeds business has suffered some lower sales of sorghum and
sunflower products due to dry conditions in Australia over the summer, it
remains well positioned to continue generating earnings growth on a full year
basis.

Management remains confident that, despite the challenging conditions in
Australia, the company will generate earnings growth over the full year.

As stated at the AGM, levels of net working capital and net debt will be
higher at January 31 than at the same time in the previous year.  Drivers
include higher sales and resulting receivables in Brazil; the normal first
half inventory build to support what is expected to be higher second half
sales in Northern Hemisphere markets; and a negative translation impact due
to the lower Australian dollar.

Nufarm will report its results for the six months to January 31 on March 26.

-- end --

Further information: Robert Reis
   [email protected]
   Corporate Affairs
   * (61 3) 9282 1177
End CA:00246366 For:NFF    Type:FORECAST   Time:2014-01-24 11:35:24