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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
Please see important Research Disclaimer.
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
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.