PGG Wrightson downgrades earnings expectations

PGG Wrightson has revised down its projected full-year earnings, due to global recession and a dairy sector slowdown.

The company said today net operating earnings for the year to the end of June were likely to range from $30 million to $32 million, rather than the previous guidance of $36m to $42m.

"The key factor in the revised outlook for the full 2009 year is the impact of the global recession on the rural sector and a significant recent slowdown in dairy activity during our peak trading period," PGG Wrightson said.

During the first half of the financial year, the company recorded a strong operating result, reflecting the resilience of the agricultural sector.

"However, earnings are heavily weighted towards the second half year and market conditions both here and overseas have become significantly tougher as the recession deepened and farmer confidence deteriorated," the company said.

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Posted: 24 Jun 2009

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