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- Release Date: 14/05/13 10:30
- Summary: FORECAST: PGW: PGG Wrightson Trading Update
- Price Sensitive: No
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PGW
14/05/2013 08:30
FORECAST
REL: 0830 HRS PGG Wrightson Limited
FORECAST: PGW: PGG Wrightson Trading Update
PGG Wrightson Limited (PGW) has today provided an earnings guidance update.
Earnings before interest, tax and depreciation for the financial year ending
30 June 2013 is forecast to be in the range of $48 - $40 million as compared
with $55 million for the corresponding period last year.
The three main factors contributing to the change in earnings have been
climatic conditions across Australia and New Zealand, lower livestock values
and when compared to the last financial year, less earnings from Agri-feeds
post disposal to the 4Seasons Feeds Limited joint venture.
Climatic extremes in Australia with two record wet years followed by
record-breaking high temperatures this year have frustrated the company's
efforts to build earnings in Australia. Consequently, the Australian seed
business, whilst important to the group strategically, is not forecast to
contribute significantly to group earnings this year.
Climatic conditions in New Zealand have also been a factor with the whole of
the North Island and much of the South Island in one of the most extensive
droughts on record.
PGW Managing Director, George Gould said that livestock values have been in
decline since the beginning of the current financial year, first in sheep and
more latterly in beef, deer and dairy.
"While volumes and market share remain solid, prices are back approximately
30% compared with last year and this has had a material impact on group
earnings. The business of PGG Wrightson reflects to a great degree the
fortune of our farmer clients and this has been an extremely difficult
trading year, which is forecast to impact on PGG Wrightson's final result."
Mr Gould said.
For further information contact:
George Gould
Managing Director
+64 3 372 0976
End CA:00236166 For:PGW Type:FORECAST Time:2013-05-14 08:30:03
