Agribusiness group AWB Ltd
(ASX:AWB) has downgraded its full year guidance to between $85 and $110 million.
The company had forecast profit before tax and significant items for the year ending September 30, 2010, of between $115 and $140 million.
AWB attributes the decrease to the expected reduction in annual profit before tax of $7 million due to sale of the Landmark Financial Services loan and deposit books.
Apart from its Australian grain marketing business, the company says all key operating businesses are trading broadly in line with expectations.
The company has forecast a profit before tax and significant items for the half year of between $25 and $35 million.
Managing Director Gordon Davis says increases in global wheat stocks, lower transactional margins and reduced price volatility within the Australian and international grain markets have impacted the profitability of the business.
But Mr Davis says he expects the company’s domestic pooling and logistic businesses to deliver a stronger result than the prior year.
The company says it is generally in a better position with the effective closure of five out of six legal actions against it and a more conservative balance sheet structure.
AWB posted a loss of $250.82 million for the 12 months to September 30, 2009.
