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


Nufarm to review NZ, take A$39M charge on Aussie shakeout

Nufarm to take A$39M charge on Aussie restructure; reviewing NZ

March 18 (BusinessDesk) - Nufarm, the agricultural chemicals manufacturer, will take an A$39 million charge against this year’s results to close plants, service centres and back office functions to bolster returns.

The company, which makes herbicides and pesticides, plans to close manufacturing plants at Welshpool in Western Australia and Lytton in Queensland. It will also close six facilities in a reorganisation of its network of regional service centres and warehouses, cut jobs in support and administration, and move to a new management structure, managing director Doug Rathbone said in a statement.

“This is about improving the business and more effectively meeting the needs of our customers with an efficient and cost-effective structure,” Rathbone said.

The company is also reviewing its manufacturing operations in New Zealand and will discuss its preliminary conclusions with staff over coming weeks “as part of a consultation process.” It gave no details.

Rathbone said Nufarm “is strongly committed” to the New Zealand market.

The changes will be made over the next two years. Of the A$39 million booked in the current year, A$28 million would be a non-cash impact, the company said. Cost savings from the reorganisation are expected to be A$13 million a year.

Shares of Nufarm last traded at A$3.90 on the ASX and have fallen about 20 percent in the past year while the S&P/ASX 200 Index climbed 6 percent.

The shares are rated ‘hold’ based on the consensus of 12 analysts polled by Reuters, with a median price target of A$4.80.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Land & Water Forum: Fourth Report On Water Management

The Land and Water Forum (LWF) today published its fourth report, outlining 60 new consensus recommendations for how New Zealand should improve its management of fresh water and calling on the Government to urgently adopt all of its recommendations from earlier reports. More>>



Welcome Home: Record High Migration Stokes 41-Year High Population Growth

New Zealand annual net migration hit a new high in October as more people arrived from than departed for Australia for the first time in more than 20 years. More>>


Citizens' Advice Bureau: Report Shows Desperate Housing Situation Throughout NZ

CAB's in-depth analysis of over 2000 client enquiries about emergency accommodation shows vulnerable families, pregnant women and children living in cars and garages, even after seeking assistance from the Ministry of Social Development and Housing New Zealand. More>>


Speaking For The Bees: Greens Call For Neonicotinoid Pesticide Ban

The National Government should ban the use of controversial pesticides called neonicotinoids after evidence has revealed that even at low doses they cause harm to bee populations, the Green Party said today. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news