Embattled wheat exporter AWB Ltd has cut its forecast underlying profit before tax and amortisation (PBTA) for fiscal 2006 by 20 to 25 per cent.
AWB also warned that forecast domestic wheat production for 2006/07 had been reduced to 18 to 20 million tonnes, from 23 to 25 million tonnes, following below average rainfall across Australia.
At its half year results in May, AWB Ltd forecast underlying PBTA for the year ended September 30, 2006, similar to its $184.5 million underlying PBTA in the previous fiscal year.
"This was, however, subject to normal seasonal and operational conditions," AWB said.
"Unfortunately, the current drought affecting farmers across Australia has resulted in lower than expected merchandise and fertiliser sales in the critical months of May, June and early July."
AWB said its performance had also been impacted by the continuation of difficult trading conditions and volatile world wheat markets, which have squeezed commodity margins.
"As a result, lower than expected outcomes are now forecast in Landmark, grain acquisition and trading and pool management services," the company said.
"AWB is therefore reducing forecast underlying PBTA for the year ending September 30 2006, by 20 to 25 per cent from previous guidance."
AWB said it was committed to reducing costs and its long-term strategy of diversification in commodity management, rural services and financial services.
© 2006 AAP
Malle, how is your crop?
AWB also warned that forecast domestic wheat production for 2006/07 had been reduced to 18 to 20 million tonnes, from 23 to 25 million tonnes, following below average rainfall across Australia.
At its half year results in May, AWB Ltd forecast underlying PBTA for the year ended September 30, 2006, similar to its $184.5 million underlying PBTA in the previous fiscal year.
"This was, however, subject to normal seasonal and operational conditions," AWB said.
"Unfortunately, the current drought affecting farmers across Australia has resulted in lower than expected merchandise and fertiliser sales in the critical months of May, June and early July."
AWB said its performance had also been impacted by the continuation of difficult trading conditions and volatile world wheat markets, which have squeezed commodity margins.
"As a result, lower than expected outcomes are now forecast in Landmark, grain acquisition and trading and pool management services," the company said.
"AWB is therefore reducing forecast underlying PBTA for the year ending September 30 2006, by 20 to 25 per cent from previous guidance."
AWB said it was committed to reducing costs and its long-term strategy of diversification in commodity management, rural services and financial services.
© 2006 AAP
Malle, how is your crop?
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