Nufarm (ASX:NUF) has been forced to slash its full-year operating profit by $21 million.
It follows a legal dispute with a disgruntled supplier. Nufarm’s been unable to reach an agreement with the supplier about claims in relation to sales of glyphosate...one of the main ingredients in Nufarm’s weedkillers.
Nufarm recorded $58 million in receivables and told investors it was confident about receiving the payments. Analysts say the markets will look beyond the news believing it to be a one-off cost.
For the six months to January 31 2011, Nufarm reported a net profit of $4.38 million.
