Australian Agricultural Company Ltd
(ASX:AAC) has appointed David Farley as Managing Director and CEO and also downgraded its earnings guidance for the second half of the financial year.
Mr Farley, who will begin his role as CEO on December 1, is formerly the managing director of Colly Cotton Ltd. He was also formerly CEO of a US cotton growing and marketing co-operative Calcot.
In its half year results the company forecast a profit after tax for the second half to December 31, assuming that cattle prices remain steady through to the end of the year.
The Agricultural company has reviewed its second half earnings forecast in the light of a strongly appreciating Australian/US dollar position and says it now does not expect any significant earnings before interest and tax contribution in the second half of the financial year on its year end results.
The company says since August 2009 the major Australian cattle price indices have fallen 9 - 11 per cent, saying that for every 1 per cent change in the company’s total herd valuation, its earnings before interest and tax is potentially impacted by $4 million.
Australian Agricultural Company posted a loss of $38.7 million in 2008.
