Australia: ABB Grain expects 80 % jump in 2006 earnings after bumper harvest
Grains marketer ABB Grain Ltd said on February 24 it expects earnings to rise by almost 80 pct in the fiscal year to June because of bumper harvests of grains including barley and wheat, according to AFX UK Focus. ABB Grain chief executive Michael Iwaniw said a net profit, before goodwill amortization, of between 65-67 mln aud is expected this year up from 36.2 mln for the 2005 fiscal year.
Iwaniv said ABB's storage and handling grain receivals for the 2005/2006 harvest were 6.6 mln metric tons, its third highest. "Generally, grain quality was very good," he told the company's annual meeting in Adelaide.
Iwaniw also added that the company is in a strong position to market wheat overseas if there is any change to the current export system.
Australia's sole marketer of wheat in export markets, AWB Ltd, has become embroiled in allegations of paying kickbacks to obtain sales in Iraq under the United Nations oil-for-food program during Saddam Hussein's regime, leading to calls for Australia's single desk wheat export selling system to be changed.
Iwaniw said ABB is already the second biggest wheat marketer in Australia's domestic market. "Our success in wheat further reinforces our position as the nation's second biggest wheat marketer and signals to the wider community that ABB is not a one dimensional organization," Iwaniw said.
"Similarly, if (we stress if) the wheat export legislation changes in the future, then -- because of ABB's infrastructure, existing strong relationship with international customers and supply chain capabilities -- we believe we will be in a strong situation to market wheat successfully." Iwaniw said ABB's forecast for the current fiscal year is subject to market conditions and to sales and shipping volumes.
Torna
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