Nufarm Ltd (ASX:NUF) has confirmed full year net operating profit guidance of between $55 million and $65 million, though warns net debt will increase above the initial estimate.
The agricultural chemicals supplier says net debt is expected to be around $620 million, above the $450 million estimate in July.
Increased working capital levels at 31 July, because of higher than anticipated receivables, is attributed for the increased net debt.
Nufarm advises that July sales were largely in line with expectations, but the collection of cash from the sales will not happen until after the end of the financial year.
Audited results for the 12 months ending 31 July will be released on 28 September.
Chairman Donald McGauchie also confirmed today that the strategic review of the business is underway, and will provide an update to coincide with the release of the end of year results.
Nufarm reported a profit of $79.88 million for the 2009 financial year.
NUF Price at posting:
$3.67 Sentiment: None Disclosure: Held
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