GrainCorp upgrades profit forecast

The grain handler announced yesterday that net profit after tax for the 12 months ending September would likely be in the range of $37m to $42m following increased grain receivals and exports.

At its annual meeting in February, GrainCorp forecast that net profit for the year would be $23m to $28m.

The company also said yesterday that, subject to a final audit, net profit for the six months ended March was expected to be $32m.

Grain receivals so far this year were 9.05m tonnes and total receivals by the end of September would likely be between 9.2m and 9.4m tonnes, GrainCorp managing director Mark Irwin said.

The company had earlier forecast total receivals to be between 8.5m to 9.5m tonnes.

“We have handled more than 2.5m tonnes of grain through our port terminals so far this financial year,” Mr Irwin said.

“Based upon forecast shipping demand provided to us by the dozen grain exporters we provide terminal services to, we have increased our export tonnage forecast throughput to more than 4m tonnes of grain exports by the end of this financial year.”

However, Mr Irwin warned that grain export tonnages for all exporters may be cut if factors including the rising Australian currency and the size of the northern hemisphere harvest crimp the sector’s competitiveness.

“Our export tonnage assumptions are based on forward vessel nominations and bookings and any significant change to these may have an impact on the tonnage of exports we handle.”

The company is due to deliver its first half results next Monday.

GrainCorp’s shares, which have traded between $6.68 and $7.69 in the past week, rose 19c in early trading on the Australian Securities Exchange today to $7.39.