MELBOURNE - Australian farm chemicals maker Nufarm reported a 35 per cent jump in annual profit, boosted by a contribution from its half-owned Brazilian crop protection company Agripec and products it acquired in 2004, and forecast further earnings growth in fiscal 2006.
Nufarm, which competes against companies like Switzerland's Syngenta
and US giant Dow Chemical, said while it faced strong competition in key markets, plans to cut costs and boost margins would help it reach its 10 per cent annual net earnings growth target.
"Given average seasonal conditions in Nufarm's major markets, directors are very confident that this target can be achieved in 2006," managing director Doug Rathbone said.
Net profit before one-off items rose to A$103.5 million ($114 million) for the year to July 31 from A$76.6 million a year earlier. Including one-off items, profit rose 37 per cent to A$104.3 million.
The result was in line with the average forecast of five analysts for a net profit of A$103 million and matched the company's own forecast for 35 per cent growth in operating profit.
Its shares last traded at A$11.11, down just a cent on the day but up 23 per cent in 2005.
- REUTERS
