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

 


Landcorp cuts FY15 earnings guidance on lower dairy payout

Landcorp slashes FY15 earnings guidance on lower dairy payout

By Paul McBeth

Aug. 20 (BusinessDesk) - Landcorp Farming, the state-owned commercial farmer, slashed guidance for 2015 earnings after falling global dairy prices prompted Fonterra Cooperative Group to trim its forecast payout to farmers.

The Wellington-based company expects net operating profit of between $8 million and $12 million in the 12 months ending June 30, 2015, down from a previous forecast of $20.5 million in its statement of corporate intent, it said in a statement.

"The decrease from the SCI forecast reflects the recent downward revision in Fonterra's forecast milk payment to $6 kg of milk solids," it said. "This forecast assumes there will be no adverse weather conditions, deterioration in the foreign currency of current market prices."

Landcorp issued the warning yesterday, before the latest GlobalDairyTrade auction which showed the mildest decline in five events as a gain in whole milk powder prices offset a drop in skim milk powder.

Commodities, dominated by dairy products, are central to New Zealand’s export returns and help drive the economy. Yesterday the Treasury cut its short-term forecasts for economic growth and tax revenue, citing weaker prices for export commodities. Still, it expects prices to stabilise near current levels, saying factors driving them lower are short term, not structural.

Landcorp, which manages 137 farms, more than tripled first-half earnings for the 2014 year as record milk prices drove up income from its dairy operations. In June, it said it expects 2014 net operating profit of $28 million to $30 million. The earnings are scheduled for release on Aug. 25.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news