Bad weather reins in profit forecasts

''April was very wet for most of the country and this made crops difficult to harvest and paddocks challenging to work,'' said PGG-W chief executive Mark Dewdney. Photo / File

Rural services provider PGG-Wrightson has reined in its full-year profit expectations, with inclement autumn weather dampening expectations.

In a market update yesterday, PGG-W chief executive Mark Dewdney said he expected full-year operating earnings before interest, tax, depreciation and amortisation and after-tax profit to both be at the bottom end of earlier guidance, respectively, $62 million to $68 million and $46 million to $51 million.

''Prior to autumn we were tracking ahead of our forecasts, but the weather across New Zealand in this final quarter ... has put a dampener on our 2017 earnings expectations,'' he said.

The full-year results are expected on August 8.

The most affected division was seed and grain.

''April was very wet for most of the country and this made crops difficult to harvest and paddocks challenging to work,'' he said.

However, its livestock division had a strong final quarter as lower stock numbers and international demand underpinned prices, retail trading went well and rural supplies was less affected by the April rains, Mr Dewdney said.

Signs of improving confidence in several key agricultural sectors meant early indications for PGG-W's 2018 financial year were ''looking encouraging'', he said.