Agricultural company ABB Grain Ltd
(ASX:ABB) has downgraded its 2009 earnings guidance as a result of difficult market conditions and slow demand for Asian malt and Australian rural inputs.
ABB says it now expects to report underlying net profit after tax of $43 million to $53 million from previous guidance of between $53 million and $63 million.
The company also says it anticipates underlying earnings before interest, tax, depreciation and amortisation of $125 million to $145 million.
The company says it has experienced slower malt deliveries against contracts in the Asian region due to the global financial crisis resulting in lower growth in beer consumption.
In addition ABB says the recent past droughts have dampened rural input sales including fertilizer, agricultural chemicals and merchandise.
The company says that even with the impact of fertilizer losses and difficult seasonal conditions this year, the outlook is still equivalent to last year’s earnings. ABB Grain’s profits recovered in 2008 from a big fall the year before.
Frozen foods manufacturer Patties Foods Ltd (ASX:PFL) has announced the appointment of Chris Riordan as the company’s new chairman.
Mr Riordan is currently chairman of Radio Rentals, and has previously filled the roles of deputy chairman and then chairman of SPC and deputy chairman of Golden Circle.
The appointment follows an independent recruitment process to identify the most suitable person to lead the board in delivering on the company’s vision.
Acting chairman Ernest Barr says Mr Riordan’s previous board contributions in achieving transformational growth within the food sector makes him an outstanding candidate. Patties Foods 2008 net profit was $13.84 million.
Online wagering products company Centrebet International Ltd (ASX:CIL) says it expects its earnings for fiscal 2009 to be at the upper end of its earlier guidance of between $10 million and $11 million.
The company’s says the result has been impacted by a number of changes in the industry resulting from deregulation, which Centrebet says it is capitalizing on through successful marketing initiatives delivering longer term growth in market share.
Centrebet says it expects strong profit growth in fiscal year 2010 compared to fiscal 2009, driven by continued market-share growth in Australian online revenue, the successful launch in late May 2009 of the TAB fixed odds management contracts, and new cost controls. Centrebet International posted net profit of $13 million in 2008.
