Forecasts Look Down For Cattle Company
AUSTRALIA - AAco, Australia's largest cattle company has published an earnings forecast, which promises no significant earnings.
2 November 2009
1 minute read
Three months ago, AAco was forecasting a profit after tax for the second half of the financial year, assuming that cattle prices remained steady.
The Board of AAco has reviewed its second half earnings forecast in the light of a strongly appreciating Australian / US dollar position and guidance is now given that the company does not expect any significant earnings before interest and tax contribution in the second half of the financial year on the Company's year end results.
Stephen Lonie, Chairman of AAco, says the major Australian cattle price indices have fallen by 11 per cent as the Australia dollar reaches historic high levels.
The company says each one per cent fall in AAco's herd valuation, costs it $4 million. The Board of AAco has also appointed David Farley, the former head of Colly Cotton Limited, as managing director and chief executive officer.
It follows a major shake-up at AAco in June, when the then chairman, Brett Heading, was sacked by shareholders and a new five-member board was voted in.
TheCattleSite News Desk
