February 25, 2011
Fonterra increases 2010/11 forecast payout range
Press Release
Fonterra has announced an increase in its forecast payout range (before retentions) for the 2010/11 season from NZD7.30-7.40 (US$5.49-5.56) to NZD7.90-8.00 (US$5.94-6.01).
The forecast payout incorporates a forecast milk price of NZD7.50 (US$5.64) per kilogram of milksolids (kgMS), 60 cents higher than the previous forecast; and a distributable profit range for the 2011 financial year of 40-50 cents per share (unchanged from previous forecast).
Fonterra has reduced the target dividend range to 25-30 cents per share (previously 25-35 cents per share). The dividend would be paid out of distributable profit.
As a consequence, Fonterra now forecasts that a 100% share backed farmer will receive, on a cash basis, a total of NZD7.75-7.80 (US$5.83-5.86), with the balance of distributable profit being retained by the co-operative.
