May 28, 2007

Australia's ABB first half profit seen to reach at US$15 million

Australia's agricultural and grain company ABB Grain Ltd expects to reach is on track to record an annual profit of US$15 million (A$19 million), despite a first half-profit decline of A$18.8 million.

ABB managing director, Michael Iwaniw, said Monday's results, while lower than the previous corresponding period, were consistent with the company's full year profit forecast.

Monday's result for the half year ended March 31, 2007, represented a 58 percent fall compare to the A$44.8 million profit achieved for the first half last year due largely to severe drought that adversely affected Australia's agri-business.

Iwaniw said stronger malt revenues and grain marketing, including its expanded Joe White Maltings plant in Perth further pulled ABB from a huge profit loss.

The company will pay out A$7.4 million in interim dividends, with B-class share-holders to collect 5.0 cents per share as an interim fully-franked dividend, payable on July 4.

ABB's total grain receivals in the last South Australian harvest was only 1.8 million tonnes, compared to 6.6 million tonnes in 2005/06 and 5.9 million tonnes for the five-year average.

Nevertheless, Iwaniw said the grain company was on track to book a profit between A$16 million and A$19 million this year, despite the drought, as forecast earlier this year.

The executive said marketing and handling of grain and other commodities is affected by seasonality as the majority of earnings are derived during the harvest period in the first half of the financial year due to the nature of the grain industry.