April 23, 2008

AWB announces better than expected H1 net profit

Australian agribusiness AWB Ltd. (AWB.AU) Wednesday announced a net profit guidance for its fiscal first half ended March 31 in a range AUS$45 million to AUS$52 million.

Managing Director Gordon Davis said the better-than-expected result is largely attributable to a strong performance by the Landmark business, in part due to increased agricultural activity following recent rains.

The financial services and Australian commodities divisions have been performing strongly, but the international commodities division earnings will be significantly down on the year-earlier period, he added.

AWB also said it will keep under active review the taking of a potential provision of AUS$26.1 million in its fiscal first half accounts for a possible liability arising from litigation brought by Standard Chartered Bank against AWB's U.S. unit.

"The company continues to be of the view that that AWB (USA) has a strong position and will vigorously pursue all of its appeal avenues," Davis said.

AWB's fiscal first half result will be unveiled on May 21.