May 31, 2007

Australia's Graincorp 1H net profit down by 71 percent

Australia's Graincorp Ltd. said its net profit for the six months to March 31 fell 71 percent to AUS$5.5 million (US$4.52 million) from AUS$19.4 million (US$15.95) a year ago, with grain receivals impacted by drought conditions.

Revenue for the six months was down just 2 percent to AUS$447.1 million (US$367.82), from AUS$454.4 million (US$373.3 million) and the company cut its interim dividend by 50 percent to 10 cents per share.

Managing Director Tom Keene said that the company was still forecasting a loss for the full year in the range of AUS$20 million to AUS$23 million from a previous loss guidance of AUS$20 million to AUS$30 million.

Grain receivals were down 79 percent to 2.2 million metric tonnes, but Keene said the current growing season was off to an "excellent start" with recent rains in Victoria and New South Wales states ensuring the bulk of crops are now planted in these areas.

"Whilst the 2007 financial year is impacted by drought, the business is on track against the three year strategic plan and the early outlook for the 2007/08 season is good," said Keene.