Manufacturer and supplier of agricultural chemicals Nufarm Ltd
(ASX:NUF) has reported a 42.1 per cent fall in net profit to $79.9 million for the year to July 31.
Revenue fell 7 per cent to $2.68 billion, the company saying the result due to a very difficult second half.
However the company says it expects to see growth in group profitability in the 2010 financial year with an improved operating environment in Brazil, a more competitive position in glysophate and continued revenue and margin expansion across other product positions being the major contributors to that growth.
Nufarm also says it has entered into a heads of agreement with Sinochem in relation to a proposal for Sinochem to acquire all of the issued ordinary shares in Nufarm for $13 a share.
Nufarm declared a final dividend of 15 cents a share for the year to July 31 but says the acquisition price of $13 a share will not be reduced by the amount of this dividend.
The chemical maker says the heads of agreement allows it to work with Sinochem for a period ending December 3 2009 on an exclusive basis to negotiate a transaction implementation agreement.
Nufarm says if a transaction implementation agreement is executed, the Nufarm board intends to unanimously recommend the proposed acquisition.
Nufarm’s 2008 net profit was $137.9 million, down on the year before.
