Share
- Release Date: 26/07/12 13:35
- Summary: FORECAST: NFF: Nufarm forecasts strong growth in underlying profit
- Price Sensitive: No
- Download Document 2.83KB
NFF
26/07/2012 11:35
FORECAST
REL: 1135 HRS Nufarm Finance (NZ) Limited
FORECAST: NFF: Nufarm forecasts strong growth in underlying profit
Nufarm Limited announced today that it expects to generate underlying
Earnings before Interest and Tax (EBIT) of between $200 million and $205
million for the current financial year, ending July 31. This compares with an
underlying EBIT1 of $171.8 million in the previous financial year. Underlying
profit after tax2 is expected to be a range of $110 million to $116 million
(2011: $98.1 million).
Trading conditions in the last six months of the financial year have varied
between the different markets in which Nufarm operates.
- Australian seasonal conditions have been positive in some cropping regions,
however other areas - and in particular, Western Australia - have had
relatively dry and late seasons and this has impacted on demand for crop
protection inputs. Nufarm's Australian business has performed solidly in a
very competitive market.
- North American cropping conditions started very positively but, in the USA,
have deteriorated significantly over the June/July period. Despite this,
Nufarm has grown its business in most of its key market segments .
- The company's Brazilian business has performed very strongly against a
backdrop of positive market conditions and an average season.
- European conditions have been challenging, with the need to manage
increased risk, coupled with unfavourable seasonal conditions and lower
commodity prices affecting the business in a number of markets. Nufarm's
European based manufacturing operations have performed very strongly. Those
facilities manufacture products for global markets.
- Nufarm's seed technologies business is having an excellent year and will
post strong revenue and EBIT growth on last year's results.
Nufarm's working capital position at year end will be impacted by later
selling seasons in several regional markets, including Western Australia and
continental Europe. Strong June/July sales in Brazil - driven by demand for
inputs into the next soybean crop - will also contribute to a higher
receivables number at July 31. Year end debt will be higher than the previous
year due to the net working capital position and the consideration associated
with the acquisition of the Seeds 2000 business in the first half of the
financial year.
Nufarm will release its detailed results for the current financial year on
September 27.
___________________________________________________
1 Underlying EBIT is calculated as earnings before interest, tax
and material items
2 Underlying profit after tax is calculated as the net profit
after tax for the period exclusive of material items
-- end --
Further information: Robert Reis
Corporate Affairs
[email protected]
* (61 3) 9282 1177
End CA:00225334 For:NFF Type:FORECAST Time:2012-07-26 11:35:26
