Agricultural chemicals maker Nufarm Ltd
(ASX:NUF) says it expects to report a full year profit of between $80 and $100 million despite posting a half year loss of $40 million.
The result is in line with previous guidance provided to the market.
The loss for the six months to January 31 includes a negative impact from material items of $35.8 million, mostly due to losses related to weed killer glyphosate.
Nufarm’s operating result for the period was a loss of $4.2 million.
Group sales came in at $890 million, down on the $1.24 billion recorded in the same period a year ago.
However, the company says the second six months of the financial year are expected to show that recovery is well underway across important areas of the business.
The company says its full year profit forecasts assume at least average climatic conditions and subsequent demand in the key selling regions and a gradual improvement in glyphosate margins through the balance of the financial year.
Nufarm did not declare an interim dividend. Nufarm reported net profit after tax of $79.88 million for the year to July 30, 2009.
