July 15, 2010
Australia's Nufarm trims profit forecast
Australian farm chemicals group Nufarm has halved its full-year profit forecast and raised its debt projection, as a result of tough winter in North America and Europe affecting demand.
Following the latest in a string of profit warnings over the past year, Nufarm, one-fifth owned by Japan's Sumitomo Chemical, said the board was now conducting a broad strategic review and would reposition the business away from the product it has focused on, the weedkiller glyphosate.
Nufarm is now expecting a full-year net operating profit around AUD55 million-AUD65 million (US$49 million-US$57 million), down from an earlier forecast for an operating profit between AUD110 million (US$97 million) and AUD130 million (US$115 million).
The company also raised its forecast for net debt by about one-third to AUD450 million (US$397 million) for the year to July 31, 2010.
