Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fonterra 2012 payout falls 19 percent , misses forecast

Fonterra 2012 payout falls 19 percent , misses forecast

Sept. 26 (BusinessDesk) - Fonterra Cooperative Group, the world’s largest exporter of dairy products, missed its forecast with a 19 percent drop in its 2012 payout to farmers, reflecting lower prices for milk and a stronger kiwi dollar, and in spite of record production.

The Auckland-based company will make a payout of $6.40 for a full shared-up farmer made up of a farmgate milk price of $6.08 per kilogram of milk solids and a dividend of 32 cents a share. The farmgate milk price was $7.60 a kilogram a year earlier.

The payout is below the forecast range to $6.45-$6.55 Fonterra gave in May, when it revised down its estimate as global prices fell. Sales in the financial year ended July 31 fell 0.5 percent to $19.77 billion, even as volumes increased 2 percent to 3.94 million tonnes. Pretax earnings climbed 9 percent while net profit fell 19 percent to $624 million, mainly reflecting year-earlier tax credits of $202 million.

“All around the world we saw record dairy production, which was mirrored back here in New Zealand,” said outgoing chairman Henry van der Heyden. “Global dairy demand held up reasonably well but this ocean of milk obviously impacted on global commodity prices.”

Based on auctions on the GlobalDairyTrade platform, prices of dairy products sank to a 34-month low in May, though there have been gains in the past four fortnightly sales. Today Fonterra said some recovery had been expected in prices and was “partly offset by further appreciation of the New Zealand dollar.”

Farmers enjoyed record production last season, because of favourable growing conditions, and increased volumes helped soften the impact of weaker prices. The company refrained from updating its forecasts for 2013, saying it is in an information blackout period in the lead up to the release of its prospectus for the Trading Among Farmers scheme.

Fonterra towers over other corporates in New Zealand, generating almost four times more revenue than Telecom, the nation’s largest listed company, with about $4.5 billion of sales last year. Dairy products are New Zealand's biggest export.

Its NZ Milk Products unit lifted sales by 1 percent to $15.7 billion, while normalized earnings gained 23 percent to $515 million. The Australia-New Zealand business, which handles its consumer brands, reported a 20 percent decline in normalized earnings to $204 million, which Fonterra said reflected a challenging market in Australia, in the face of “a continued downturn in consumer spending and aggressive competition.”

Normalised earnings for Asia/Africa, Middle East rose 1 percent to $194 million while for Latin America earnings gained to $129 million from $119 million.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Sky City : Auckland Convention Centre Cost Jumps By A Fifth

SkyCity Entertainment Group, the casino and hotel operator, is in talks with the government on how to fund the increased cost of as much as $130 million to build an international convention centre in downtown Auckland, with further gambling concessions ruled out. The Auckland-based company has increased its estimate to build the centre to between $470 million and $530 million as the construction boom across the country drives up building costs and design changes add to the bill.
More>>

ALSO:

RMTU: Mediation Between Lyttelton Port And Union Fails

The Rail and Maritime Union (RMTU) has opted to continue its overtime ban indefinitely after mediation with the Lyttelton Port of Christchurch (LPC) failed to progress collective bargaining. More>>

Earlier:

Science Policy: Callaghan, NSC Funding Knocked In Submissions

Callaghan Innovation, which was last year allocated a budget of $566 million over four years to dish out research and development grants, and the National Science Challenges attracted criticism in submissions on the government’s draft national statement of science investment, with science funding largely seen as too fragmented. More>>

ALSO:

Scoop Business: Spark, Voda And Telstra To Lay New Trans-Tasman Cable

Spark New Zealand and Vodafone, New Zealand’s two dominant telecommunications providers, in partnership with Australian provider Telstra, will spend US$70 million building a trans-Tasman submarine cable to bolster broadband traffic between the neighbouring countries and the rest of the world. More>>

ALSO:

More:

Statistics: Current Account Deficit Widens

New Zealand's annual current account deficit was $6.1 billion (2.6 percent of GDP) for the year ended September 2014. This compares with a deficit of $5.8 billion (2.5 percent of GDP) for the year ended June 2014. More>>

ALSO:

Still In The Red: NZ Govt Shunts Out Surplus To 2016

The New Zealand government has pushed out its targeted return to surplus for a year as falling dairy prices and a low inflation environment has kept a lid on its rising tax take, but is still dangling a possible tax cut in 2017, the next election year and promising to try and achieve the surplus pledge on which it campaigned for election in September. More>>

ALSO:

Job Insecurity: Time For Jobs That Count In The Meat Industry

“Meat Workers face it all”, says Graham Cooke, Meat Workers Union National Secretary. “Seasonal work, dangerous jobs, casual and zero hours contracts, and increasing pressure on workers to join non-union individual agreements. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news