namoi cotton expects 10m to 12m net profit

Sydney - Wednesday - July 26: (RWE Australian Business News) -
Namoi Cotton Co-operative Ltd (ASX code: NAM) today confirmed it will
achieve a net profit (before rebate) of between $10 million to $12
million for the year.
"This is a commendable result in difficult circumstances,"
chairman Mr Stuart Boydell told the annual meeting in Wee Waa, NSW.
He said extremely hot conditions had affected yields in most
regions, resulting in the 2006 crop reducing to 2.6 million bales.
"The record yields enjoyed in 2005 will not be repeated, with
the average yield achieved on irrigated properties falling to
approximately 9.0 bales per hectare," Mr Boydell said.
"Despite the 10 per cent reduction in crop, Namoi Cotton will
gin and market similar volumes to those achieved in 2005.
"The resultant increase in market share is a consequence of the
sustained delivery of cost-effective and high-quality services and
products, and entrenches Namoi Cotton as the clear Australian market
leader," he said.
The chairman said Namoi's ginning market share would increase to
30.5 per cent and marketing market share to 26.5 per cent.
"Our strong and diverse marketing book will underpin a sound
2006 financial performance, despite subdued global markets.
"Our strategy in maintaining market share in traditional markets
has protected us from the volatility and uncertainty emanating from
China. The reluctance of China to issue additional import quota has seen
a marked reduction in interest for Australian cotton in recent months."
The impact of the drought was expected to continue into the 2007
season, with all regions materially affected and major dams depleted.
"In light of the adverse weather situation we are reluctant to
forecast the crop size for 2007.
"Whilst seasonal vagaries continue to adversely impact the
industry, our flexible business model will continue to underpin the
financial performance of Namoi Cotton," Mr Boydell said