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.
