Nufarm FY10 profit to jump
December 2, 2009
Nufarm Limited (NUF) said at today’s AGM that it was expecting improved conditions this year to deliver an increased net profit above last year’s post-tax profit of around $80 million. The company said this was despite a soft start to the year to date, which has seen sales down from the previous corresponding period.
”It should be remembered that last year’s first half result benefited from an unusual sales mix of higher margin products in an environment that was quite different from current conditions,” Nufarm managing director Doug Rathbone said.
”We are now on a curve that reflects improving business conditions and we remain very confident that net operating profit for the full year will show a considerable improvement on 2009.”
The company broke with tradition by not putting a figure on forecast profit for 2010, defending the move by saying business credit and the timing of a recovery in its key glyphosate, a weed killer, remained too uncertain.
Mr Rathbone also expressed disappointment the proposed takeover by Chinese giant Sinochem hadn’t proceeded on its original schedule, however the company would continue to work with Sinochem to complete the transaction by the revised date of December 23.
”If the transaction proceeds, the company enters a new phase under the ownership of another corporation,” Mr Rathbone said.
The share price of Nufarm has dipped 9.4% in two days, though has rallied 24c to $10.75 in morning trade Thursday.
”It should be remembered that last year’s first half result benefited from an unusual sales mix of higher margin products in an environment that was quite different from current conditions,” Nufarm managing director Doug Rathbone said.
”We are now on a curve that reflects improving business conditions and we remain very confident that net operating profit for the full year will show a considerable improvement on 2009.”
The company broke with tradition by not putting a figure on forecast profit for 2010, defending the move by saying business credit and the timing of a recovery in its key glyphosate, a weed killer, remained too uncertain.
Mr Rathbone also expressed disappointment the proposed takeover by Chinese giant Sinochem hadn’t proceeded on its original schedule, however the company would continue to work with Sinochem to complete the transaction by the revised date of December 23.
”If the transaction proceeds, the company enters a new phase under the ownership of another corporation,” Mr Rathbone said.
The share price of Nufarm has dipped 9.4% in two days, though has rallied 24c to $10.75 in morning trade Thursday.
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