Elders' Profit Performance Improves

It may be a season to be jolly after all for Elders (ELD) shareholders as it reported profit improvements for the first two months of its fiscal year after declaring a $395 million loss in the previous year that caused them to sell its forestry assets. In an annual general meeting on Tuesday, company Chairman John Ballard said that the sales for the first two months are in line with its improvement plans.

"We are expecting the momentum evident in Elders underlying performance in 2011 to continue and be reflected in a much improved financial result in 2012," said Ballard. "How, and when, this is reflected in the share price I am unable to predict."

Shares of the company climbed at a high of 68 cents in February. It is now issued at 23 cents per share by 1020 AEDT. Market votality, according to Ballard, made it difficult for them to determine when will Elders' improvement be reflected in its value.

"It is our expectation that market confidence and valuation of Elders shares will improve progressively as the financial and competitive benefits of these actions accrue," said Ballard.

Elders forestry assets were sold off after contributing $335.4 million to the $395 million loss in the last fiscal year.