Elders Profit Guidance Down

With a $14.6 million loss in the first half, agribusiness company Elders (ELD) has downgraded its underlying profit forecast for the full year.

For the six months to end of March, Elders booked a similar $165.9 million loss from the previous corresponding period. Without one-off items, first-half underlying profit was $1 million, an increase from the previous period loss of $2.4 million.

Excluding woodchip price negotiations impact, the new forecast is at the bottom end of the "the current market range" between $7.5 million and $24.5 million. This is comparable to the previous guidance result from $15 million to $30 million.

Risks to Elders earnings were continuing to emerge and resulted in the profit downgrade. The loss was attributed by Elders to the damaged forestry plantation from cyclone Yasi, divested shareholding in Rural Bank, and the carrying value write-off of HiFert shareholding.

Malcolm Jackman, Elders chief executive, said the company expected a rise in second half earnings and sales. However, he described the expectations as "headwinds increase in a number of business areas."

Jackman also mentioned promising weather conditions in most of Australia. The exception is Western Australia, which continue to report dry conditions.

Interim dividend will not be paid.