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.
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