Graincorp expects to return to profit this financial year

Australia's GrainCorp Ltd. (GNC.AU) said it expects to swing to a net profit in a range of A$23 million (US$15.01 million) to A$28 million (US$18.26 million) this fiscal year from a drought-induced loss of A$19.9 million last fiscal year ended September 30.

The expected swing to profit reflects increased receivals of grain from a bigger harvest of winter crops in 2008, solid yield projections for a 2009 sorghum crop now being harvested, and income from logistics management, Managing Director Mark Irwin said in a statement.

GrainCorp's marketing, ports, storage and logistics businesses are all performing strongly, but merchandise and Hunter Grain are below target, he said.

There are opportunities to grow the company's share of the domestic grain market, and to further improve its strong supply chain position, he added.