AACo losses continue to mount
February 9, 2010
Australian Agricultural Company Limited (AAC) reported a loss for the full-year to 31 December 2009 of $53.7 million, down $15 million on the previous corresponding period. The result was at the lower end of the loss forecast when the company updated guidance on 22 January.
CEO David Farley said the company, which runs around 500,000 head of cattle and is thought to be the oldest continuingly running company in Australia, faced a ‘perfect storm’ of conditions.
”Droughts and flooding lead to serious cattle losses, significantly higher rates of calf mortality and reduced herd weight gains,” Mr Farley said.
”AAco also faced below average cattle prices during the year, and the negative impact of the strong appreciation of the Australian dollar.”
Mr Farley said he was focused on a strategic review of the company, which he hoped would position the company for stronger growth in the future.
He said he expected to present his findings at the May AGM.
Looking at the result, the decline came on the back of a 33% slump in revenue to $156 million.
The final result also included a $24.9 million non-cash accounting adjustment, the company said.
At 1030 AEDT, AACo shares were down 2.5c to $1.275.
CEO David Farley said the company, which runs around 500,000 head of cattle and is thought to be the oldest continuingly running company in Australia, faced a ‘perfect storm’ of conditions.
”Droughts and flooding lead to serious cattle losses, significantly higher rates of calf mortality and reduced herd weight gains,” Mr Farley said.
”AAco also faced below average cattle prices during the year, and the negative impact of the strong appreciation of the Australian dollar.”
Mr Farley said he was focused on a strategic review of the company, which he hoped would position the company for stronger growth in the future.
He said he expected to present his findings at the May AGM.
Looking at the result, the decline came on the back of a 33% slump in revenue to $156 million.
The final result also included a $24.9 million non-cash accounting adjustment, the company said.
At 1030 AEDT, AACo shares were down 2.5c to $1.275.
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