August 10, 2006

AACo posts solid results for second half
 

Australia's largest beef producer Australian Agricultural Company Ltd (AAco) expects a solid second half as the market improves.

The company reported a US$8.47 million net profit for the first half, an increase of 27 percent on-year.

AAco is expecting solid full year's performance due to good seasonal conditions and the current improved cattle market, managing director and chief executive Don Mackay said.

Rainfall during the season was two months longer than normal and this has extended revenue generating activities, he said, adding that if cattle prices remain at the same levels, the second half should yield a good result.

AAco's earnings before interest and tax (EBIT) fell by $4.8 million to $12.2 million in the six months to June 30, 2006.

The reported net profit figure included a profit on the US$53.5 million sale of Wrotham Park Station in north Queensland and its herd of 30,000 branded cattle, worth US$4.9 million pre-tax above its December 2005 valuation.

Mackay said that sale and the US$100 million acquisition of Northern Territory cattle stations Eva Downs and Anthony Lagoon, which included 60,000 cattle, is a realignment of AAco's portfolio in line with its strategy.