May 12, 2009
AWB cuts 1H guidance on poor performance at Brazilian operations
AWB Ltd. said Tuesday (May 11) it is downgrading its first half profit guidance as a result of the poor performance of its Brazilian operations.
The Sydney-based agribusiness now expects half year net profit to be between A$8 million and A$9 million, subject to final audit.
In February, it had said it expected the half year profit to be about 45 percent to 55 percent lower than the previous corresponding half, indicating a profit of between A$10 million and A$12 million.
AWB Managing Director Gordon Davis said the company has been undertaking a review of its Brazilian operations due to their poor performance and that this had unearthed errors in the accounting treatment of some contracts.
Management in Brazil has now been restructured, with AWB General Manager Commodities Mitch Morison to complete the review of the business.
"Conditions in Brazil remain challenging and it is likely that we will emerge with a smaller and refocused business," Davis said in a statement.
