AWB to incur financial year losses

AWB expects to lose up to A$156 million this financial year because of its loss-making Brazil operations, which are being wound down.

AWB said it would make an A$80 million to A$95 million provision against its Brazil operations.

Estimations for the Brazil operations' loss for this year has also been adjusted to between A$55 million and A$65 million, down from the previous forecast of between A$50 million and A$60 million.

AWB said the profit from its continuing businesses would be negatively affected by significant items of A$31 million to A$33 million, and an operating loss of A$15 to A$17 million from Hi-Fert.

The continuing businesses include Australian Commodity Management, AWB Geneva, Landmark Rural Services, Landmark Financial Services and Corporate.

US$1 = A$1.19096 (Aug 24)