Big cattle firm slides

Australian Agricultural Co, the world's biggest cattle company with landholdings as big as Ireland, said first-half profit fell 31 per cent due to factory set-up costs and late cattle sales, knocking its shares lower.

However, it forecast strong world demand for quality beef as well as some lower costs in the second half after rains earlier this year that eased a severe drought.

AACo shares staged a sustained surge this year, almost doubling to A$3.30 ($3.74) from A$1.80 in January following widespread rains.

The stock closed down A23c yesterday to A$2.99.