May 14, 2009

Australian grains marketer GrainCorp Ltd expects calendar 2009 net profit to reach A$37-42 million, up from February's forecast of A$23-28 million.

 

GrainCorp also expects first half net profit to reach A$32 million.

 

The company's grain receivals for the year to date totalled 9.05 million tonnes, and could reach 9.2 million to 9.4 million tonnes by the end of September, said managing director Mark Irwin.

 

In February, GrainCorp had forecast total receivals of 8.5 to 9.5 million tonnes.

 

Rain in northern New South Wales and Victoria have boosted wheat and sorghum harvests.

 

Irwin said the company has handled over 2.5 million tonnes of grain through its port terminals so far this financial year.

 

Based on forecast shipping demand provided by the dozen grain exporters the company provides port terminal services to, GrainCorp has increased its export tonnage forecast throughput to more than four million tonnes by the end of this year, he said.

 

GrainCorp in February had expected grain exported through company terminals to exceed three million tonnes.

 

These revised receival and export estimations underpin GrainCorp's estimations for the full year result, Irwin said.

 

But grain export tonnages for all exporters may be reduced if Australian grain becomes less competitive due to the rising value of the Australian dollar and the size of the northern hemisphere harvest, Irwin said.

 

Export tonnage expectations are based on forward vessel nominations and bookings, and any significant change to these may affect the tonnage of exports GrainCorp handle, Irwin said.

                    

US$1 = A$1.33084 (May 14)