June 15, 2009
Profits unlikely for Australia's AAco in H1 '09
Beef producer Australian Agricultural Co Ltd (AAco) said it is unlikely to generate a profit for the first half of calendar 2009.
Stated in a market update released week, the company also doesn't see a profit for the full year.
AAco chairman Brett Heading confirmed to shareholders during the group's annual general meeting on Friday that 2009 outlook may not be rosy due to poor results of cash and non-cash factors.
He added the second half was unpredictable and that full year result will depend on currency movements, cattle production yields and cattle prices.
If these prices remain subdued, Heading said it is unlikely that AAco will record an accounting profit for the full year either.
Chief executive Stephen Toms said it had become clear in recent weeks that the optimism expressed in February, following drought breaking rains in northern Australia, was premature.
Toms said cattle prices have remained subdued, the Australian dollar has rebounded sharply from its low of 63 cents to around 80 cents against the US dollar and stock losses from the floods are likely to be higher than originally estimated.
