Nufarm positive at half-year

By Phil Boeyen, ShareChat Business News Editor

Thursday 29th March 2001

Chemicals company Nufarm (NZSE: NUF) has improved its interim profit and is confident its full-year result will also be growth positive.

In the six months ended January the company recorded a tax-paid profit of A$12.6 million, up 18.4% on last year's 8-month interim period.

MD Doug Rathbone says although the company increased spending on research and development and market development in North America, benefits of the North American expansion should begin to flow through in the second half.

Earnings per share grew to 8.2 cents per share from 7.7 cents previously, and a 7 cents interim dividend has been declared.

The company is also extending its on-market buyback for a further six months.

"The company is significantly undervalued," says Mr Rathbone.

"With the fundamentals of the business - and growth opportunities - remaining very strong, Nufarm shares represent an excellent investment and a logical component of our capital management program"

Of the company's A$568 million in total turnover during the interim period, 50.6% was generated in Australasia, 27.4% in Europe and 22% in North America.

The company's crop protection business accounted for 65% of group sales and generated an operating profit of $7.5 million.

Mr Rathbone says trading conditions in the second half will remain competitive, but the company is well positioned to achieve its forecast full year result and show profit growth across its major business activities.

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