Yes there is an agricultural boom playing out now but not every stock is a given winner.
------------------------------------------------------ Profits for agriculture firm felled June 19, 2007
AGRICULTURE investment company Timbercorp expects that lower sales of its horticulture projects in the 2007 financial year will cut $15 million from its bottom line.
Timbercorp said yesterday it expected new sales from its horticulture projects to total more than $105 million by the end of the company's financial year on September 30, 2007.
Timbercorp chief executive Robert Hance said horticulture sales in 2007 would exceed 2005's figure of $77 million but be below the record sales of $123 million last year.
"The lower-than-expected horticulture sales and the increased costs of bringing a larger suite of products to the market will reduce 2007 net profit after tax by approximately $15 million," Timbercorp said.
But any olive and almond lots unsold by September 30 would be sold next year under existing tax office rules and contribute to next year's earnings.
Timbercorp said the estimate for horticulture sales for this year was based on new horticulture sales to June 15 of $92 million, with post-June horticulture sales of about $13 million expected by September 30. The estimate did not include new sales from the company's forestry project, which remains open until June 30, 2007.
Mr Hance said horticulture sales so far this year were affected by a number of factors including the drought but he expected next year to return to normal conditions.
TIM Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
