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

 

Nufarm says 1H earnings to rise at least 15%

Nufarm says 1H earnings to rise at least 15% on South America, currency gains

Dec. 6 (BusinessDesk) - Nufarm, the agricultural chemicals manufacturer, said first half earnings will rise at least 15 percent on improved trading in South America and Europe, and foreign exchange gains.

A strong performance in South America and an improved outcome in Europe “will more than offset what is likely to be a weaker first half result in Australia,” managing director Doug Rathbone told shareholders at their annual meeting in Melbourne.,

“We remain very confident of generating an improved underlying ebit outcome for the current full year,” he said.

Nufarm shares last traded at A$5.67 on the ASX and have jumped about 40 percent this year.

In September, the company reported a return to annual profit, A$72.6 million in the 12 months ended July 31, after losses in 2011 and 2010.

Nufarm typically earns more in the second half of its year, reflecting the major cropping seasons in the Northern Hemisphere and Australia.

So far in the first half demand for crop protection products in Australia has been “relatively low”, following a dry late-winter and spring and as wheat farmers harvest their winter crop.

For summer cropping, mainly in Queensland and northern New South Wales, “further rainfall is needed to generate stronger demand for industry products.”

“Consequently, Australia is tracking behind the 2012 performance in the first quarter of the current financial year,” Rathbone said.

Sales in Asia are tracking slightly ahead of the same period last year, with a more favourable monsoon season in Indonesia generating stronger demand in plantation crops, he said.

The winter months in the US are relatively quiet, though Rathbone noted that farmers “have a strong economic incentive to plant big crops next season.” Market conditions in Canada “are generally good and we are seeing increased demand for a range of products.”

Nufarm’s Brazilian business is performing “very strongly” and Europe is tracking in line with expectations, Rathbone said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Rocket Lab: Launch Expected

Rocket Lab has delayed the roll out of the launch vehicle called Electron by one day, due to weather conditions. The planned launch attempt will now take place on Tuesday, May 23, 2017. More>>

ALSO:

Budget: Irrigate (Good Times, Come On!)

Additional grant funding of $26.7 million over the next three years plus a capital boost of $63 million towards irrigation investments in Budget 2017 will deliver economic and environmental benefits through better use of water... More>>

ALSO:

Silver Fern Farms: Proposal To Close Fairton Sheepmeat Plant

Silver Fern Farms has advised its people of the proposal to permanently close the site, and has discussed potential transfer options to its other sites in the region as part of the consultation process...
More>>

ALSO:

MPI: Myrtle Rust Appears In Taranaki

The nursery in Waitara (just north of New Plymouth) reported suspected myrtle rust symptoms on young plants to the Ministry’s 0800 number yesterday (Tuesday). More>>

ALSO: