May 19, 2010

AWB Ltd., Australia's former monopoly wheat exporter, swung to a first-half loss after taking one-time charges for the sale of its financial services business and a class action settlement.

The net loss was AUD64.8 million (US$55.9 million) for the six months to March 31 compared with profit of AUD8.5 million a year ago, the Melbourne-based company said.

AWB in March cut its full-year profit forecast by as much as 39%, citing reduced grain marketing earnings and the sale of its Landmark financial services business. The company has agreed to sell its Geneva trading unit and half its Australian grain management business to Omaha-based Gavilon LLC.

A stronger second half is expected for its rural services division and its grain management business, Managing Director Gordon Davis said in the statement.

AWB, which reported profit before tax and one-times of AUD32.8 million, dropped 3% to 97 cents at the 10:50 a.m. Sydney time on the Australian stock exchange.

The company reiterated its March forecast for full-year profit before tax and one-times of AUD85 million to AUD110 million.