Australia's Nufarm share price plunges after posting H1 loss
Australia’s Nufarm shares fall 10% after posting a half-year loss of nearly $10 million
Australian crop protection company Nufarm has seen shares fall 10% on Friday after posting a half-year loss earlier in the week.
Nufarm recorded a net loss for the six months to January 31 of A$13.6 million, compared to its A$12 million profit last year.
The company also cut its earning guidance for the year, forecasting revenue to come in between A$440-470 million, significantly lower than its first estimate in the range of A$500-530.
Nufarm cuts Australian-New Zealand production by half
Nufarm shares fell as much as 10%, hitting a more than a three-year low, ater posting a half-year loss of nearly A$10 million.ater posting a half-year loss of nearly A$10 million.
Nufarm said it cut its Australian and New Zealand production by half, saying its farmers have had to scrap purchases of fertilisers and pesticides to minimise expenditure.
‘Farmers on the east coast of Australia are facing continued dry conditions and we’ll be scaling back manufacturing and running down inventories in anticipation of another difficult season,’ Greg Hunt, Nufarm's managing director and chief executive officer, said in a statement.
'This will impact profit in the second half as we won’t be able to fully recover manufacturing overheads.' Hunt said.
Lack of rain on East Coast puts Australian farmers in panic
Bureau of meteorology data shows, many of Australia’s east coast recorded half the typical rains expected over three months, putting many farmers in panic mode.
The hostile weather conditions show little sign of easing. According to the Australian Bureau of Meteorology there is a 70 % chance of an El Nino weather system developing this year, a weather event associated with dry weather across Australian east coast.
This information has been prepared by IG, a trading name of IG Markets Ltd and IG Markets South Africa Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only
