Graincorp upgrades earnings outlook December 22, 2009 - 9:47AM
Graincorp has upgraded its initial earnings outlook for 2009-10 and says it will receive between seven and 8.5 million tonnes of grain from its nationwide network for the same period.
Graincorp on Tuesday said earnings before interest, tax, depreciation and amortisation (EBITDA) for the year would be between $180 million and $210 million.
Graincorp added that Graincorp's Malt contribution to the group's EBITDA range would be between $100 million and $120 million.
Graincorp posted a net profit of $63.2 million for the 12 months to September 30, 2009, up from a $20 million net loss in the previous year.
Revenue during fiscal 2009 was $1.729 billion, and its EBITDA increased by $114 million to $165 million.
The company said on Tuesday grain received throughout its network to date reached 6.3 million tonnes.
But drought conditions in Queensland and NSW had reduced grain receivals in those states, managing director Mark Irwin said in a statement.
"Conditions in Victoria are better than they have been for the past three seasons," he said.
"So far the harvest in Victoria, while being slowed by rain, has met our budget expectations."
"Graincorp's summer crop receival estimate is 600,000 T which represents an average intake of sorghum for our network in Queensland and Northern NSW," he added.
The summer crop receival period usually extends from January to late July.
Mr Irwin said Graincorp's malt assets in North America and the UK will be running at around 95 per cent capacity to meet its November 14 to September 30, 2010 projected malt sales volumes of between 920,000 to 950,000 tonnes.
"The assets are well maintained, and the future maintenance and capital expenditure requirements of the business unit are in line with our due diligence findings," he said.
Construction of Graincorp's Arbroath growth project in Scotland has been completed and has started producing its second batch of malt, he added.
Civil works for the company's Pinkenba project in Brisbane are underway, and the project is on budget and schedule, he said.
"There are several important markets we are unable to fully supply with our current capacity," Mr Irwin said.
"The new capacity at Arbroath and Pinkenba will allow us to meet this demand."
Graincorp will issue further earnings guidance at the company's annual meeting in Sydney on February 24.
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