Nufarm to return to black in H1 2010/11
Australian farm chemicals maker Nufarm Ltd said on Thursday it sees its first-half operating results to return to the black this year, with first-quarter earnings well ahead of the previous corresponding half.
The company now expects $10 million to $20 million operating profit in the first half of 2010/11.
"In summary, our first quarter is generally in line with, or ahead of, expectations in Australia, Asia, North America and North Eastern Europe," Nufarm chief executive Doug Rathbone told shareholders at the company's annual general meeting in Melbourne.
"The improved overall half year result will be driven by stronger earnings in most of our markets and the absence of the negative impacts associated with glyphosate related write-downs of last year."
"It will, however, be higher than at the July 2010 levels as we build working capital to levels required for the key second half selling period," Mr Rathbone said.
Nufarm, one-fifth owned by Japan's Sumitomo Chemical , is under pressure following a string of profit warnings, badly timed equity raising, a cut in its credit rating to junk and a debt blowout which have knocked its shares down 56 percent this year.
Shares in the company closed 3.45 per cent or 16 cents higher at $4.80 on Thursday.