Hot summer hits Nufarm earnings
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Pesticide company Nufarm says hot and dry conditions in eastern Australia have negatively impacted its earnings.
But a better than expected performance from its operations in South America and Europe will offset the weaker Australian business, allowing Nufarm to maintain its financial guidance for the first half of its 2012/13 fiscal year.
The company on Wednesday said profit from its Australian and New Zealand business would be well down from the same period in the previous year, and indicated its full-year result could also suffer.
Nufarm's business between August and January was primarily driven by seasonal conditions in the summer cropping regions of northern NSW and Queensland, the company said.
"These regions have experienced unusually hot and dry conditions for much of that period, particularly in the months of December and January," it said in a statement.
"This has impacted in a number of market segments, including relatively high value segments such as cotton, horticulture and other summer crops."
Autumn rainfall will determine planting activity and the demand for crop protection products for the second half of the financial year, Nufarm said.
"It is very likely, however, that due to the poor first-half conditions in Australia, the regional result at the full-year will also be well down on the 2012 full year," it said.
The company expects its underlying profit for the six months to January 31 to be 15 per cent higher than the previous corresponding period's $37.8 million.