Agribusiness service provider AWB Ltd
(ASX:AWB) is forecasting a profit for full year 2010 despite posting a loss for 2009.
The company reported a net loss after tax and significant items of $250.8 million for the 12 months to September 30 on revenue of $6.7 billion compared to a profit of $60.3 million the year before.
This result takes into account the discontinuing businesses AWB Brasil and Hi-Fert, significant goodwill impairment for Landmark Financial Services and a write down in Hi-Fert.
Managing Director Gordon Davis says that while the 2009 year was disappointing the company is forecasting full year 2010 profit before tax and significant items for its continuing businesses of $95 million to $115 million.
Mr Davis says this is before taking into consideration the benefit of a recent capital raising which should generate interest savings of $20 million to $25 million.
Looking ahead Mr Davis says Australian agriculture remains an attractive industry segment due to Australia’s close proximity to growth markets in Asia and AWB is well placed to take advantage of agribusiness opportunities going forward.
Looking back over the past five years AWB’s best net profit was in 2005.
