Nufarm operates in positive to difficult conditions

Date:07-13-2011

Crop protection company Nufarm estimated underlying net operating earnings for the financial year 2011 will settle within a range of $88 million to $94m, compared with an actual $58.6m for the year ended July 31, 2010, amid varying operating conditions.

The estimate excludes the impact of one-time items and of a receivable-related writedown for some glyphosate disclosed on June 15 that will cut the earnings estimate by $21m, the company said.

Trading conditions across the company's operations have varied in recent months between positive and difficult, and sales of glyphosate to the end of June "are well down on previous years", but non-glyphosate sales continue to show on-year growth, Nufarm said in a statement.

In Australia, most agricultural regions in the eastern states and South Australia are enjoying above-average seasonal conditions and winter crop planting activity is strong, and this will spur positive demand for crop protection products, while recent rainfall will boost sales in Western Australia, it said.

In North America, sales activity has been delayed by a mild start to the season, while in Brazil, a positive outlook for the next cropping season has generated strong early demand for Nufarm products.

European climate conditions have been difficult, it added.