February 12, 2008

ABB Grain forecasts 34 percent decline in net income

Australia-based ABB Grain's net income may fall by 34 percent, lower than previous estimates, due to lower sales and margins, Austock analysts Paul Jensz and Chris Wiltshire said on Friday.

Austock ties with ABN Amro Morgans Ltd. as the most accurate forecaster of ABB Grain's share price performance, Bloomberg data stated.

ABB Grain fell 55 cents, or 6.4 percent, to AUD8 (US$7.23) on the Australian Stock Exchange at the 4:10 p.m. Sydney time close, its biggest decline since October 10, 2002.

Austock also cut its rating on the stock to ''hold'' from ''strong buy.''

ABB employs more than 850 full time staff across Australia and New Zealand and has a turnover of more than US$1.5 billion a year.