July 22, 2009
AWB to undertake orderly wind-down of Brazilian business
Australian agribusiness AWB Ltd. said Wednesday (July 22) that it will wind down its business in Brazil, and that it expects this operation this fiscal year ending Sep. 30 to incur a pre-tax operating loss in a range A$55 million (US$44.87 million) to A$65 million (US$53.04 million).
However, AWB's continuing businesses are expected to deliver a pre-tax profit this fiscal year in a range A$90 million to A$100 million, before significant or one-time items, it said in a statement.
AWB attributed the poor result in Brazil to ongoing credit issues, deteriorating market conditions, reduced trading margins, deferred foreign exchange losses, ongoing interest and overhead costs and "poor commercial decisions made locally."
AWB also reported its 50 percent share of Hi-Fert fertilizer business after tax loss this fiscal year will be in a range A$15 million to A$17 million.
US$1 = A$1.22 (July 22)
