Elders has slumped to a hefty first half loss after poor weather and depressed livestock markets affected its agribusiness bottom line.
The company posted a net loss of $303.2 million for the six months to March 31 compared with net profit of $47.1 million for the same period a year ago.
Elders also said on Friday that the sales processes for its rural services and automotive businesses were expected to be determined before the end of its second half.
Elders said impairment charges based on accounting standards and recognising the advanced stage of the sales processes had driven the statutory loss.
Elders said the sales processes for both its automotive and rural services were well advanced.
Final due diligence for the Futuris Automotive business was underway, while final bids for rural services were expected shortly, Elders said.
Elders took a $166.5 million impairment charge on Futuris, a $52 million impairment on rural services and an additional $52 million writedown of the company’s deferred tax assets.
On an underlying basis, which excludes one-off items and impairment charges, Elders reported a half year loss of $22.8 million, compared with a net profit of $4.5 million a year ago.
Elders chief executive Malcolm Jackman said sustained hot and dry seasonal conditions across Australia and New Zealand had depressed sheep and cattle prices.
Mr Jackman said Elders’ international trading operations were hurt by the reduction of Indonesian import quotas.
“However, recent signs of increased import volumes in Indonesia for the second half of this year are promising,” Mr Jackman said in a statement.
Mr Jackman said there was some encouraging signs for the second half.
“Subject to the timing of the outcome of the sale processes for automotive and rural services, the outlook for the second half looks more favourable,” he said.
“This assumes a return to normal seasonal conditions, execution of a strong forward shipping schedule in the international trading operations and improved production volumes flowing from the VF Commodore launch and overseas operations benefiting the automotive business.”
Elders entered into a trading halt on Thursday and it remained in place on Friday.
The stock last traded at 11.5 cents.
