AACo predicts heavy losses for 2009
Australian Agricultural Company Limited (AAC) expects to post a loss in the range of $53 million to $60 million for the year ended 31 December 2009. The beef cattle producer said the financial results have been negatively affected by extreme climatic factors combined with a range of external market factors.
AACo said several factors impacted production including 2009 being the first full year in which the company absorbs the impact of the 2008 drought and floods, extreme weather events causing cattle losses, decreased herd fertility, higher calving mortality and an increase in logistics and feed costs, the incurring of high restocking costs and reduced weight gain in the cattle herd due to the adverse weather events.
In terms of the market, the company said the strength of the local currency against the US dollar negatively impacted revenues and the market price of cattle also remained at subdued levels.
AACo said the full year 2009 guidance includes a positive movement in the company’s interest rate swap position, which would create a non-cash uplift of about $14 million, compared to a loss of $25 million on interest rate swaps in 2008.
The company expects to announce results for the 2009 financial year in mid February 2010.
As at 1024 AEDT, AACo shares were down 7.5c to $1.325.
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