February 23, 2006

Australia's GrainCorp forecast A$26-30 million net profit for 2005/06

GrainCorp Ltd has forecast on Feb 16 a tax profit of between A$26-30 million for the year ending Sep 30, 2006. The forecast figure is a significant increase on last year's figure of A$12.1 million.

The company said the forecast is based on expected total grain receivals of 10.7 million tonnes, export volumes of 5.5 million tonnes and carry-over stocks of 3.1 million tonnes.

However, the company said the forecast is subject to certain variables in export performance which will become clearer as the export program unfolds over the next six months.

For the 2005/06 year, the company expects to reach 10.7 million tonnes of ex-farm receivals. This is a decrease from the previous forecast of 10.95 million tonnes.

The company has forecast total exports of 5.5 million tonnes of grain, an increase from last year's performance of 4.7 million tonnes.

Stocks of grain carried into the 2005/06 year reached 3.1 million tonnes, growing from 3 million tonnes in 2004/05.