NZ will help result: PGW

CHRISTCHURCH: PGG Wrightson reaffirmed its forecast for annual earnings, saying weaker performance from its Australian and South American businesses would be offset by better trading in New Zealand.

Operating earnings before interest, tax, depreciation and amortisation are expected to be between $65 million and $70 million in the year ending June 30, up from $64.5 million last year, and in line with its February forecast, the Christchurchbased company said on Friday.

‘‘Overall, the agricultural sector in New Zealand remains robust and is having a profitable year with solid production and good prices,’’ chief executive Ian Glasson said in a statement.

‘‘PGW’s Australian and South American businesses have faced tough conditions, with both regions being too dry to meet their sales targets.

‘‘Despite these headwinds, we continue to expect an increase in overall operating ebitda for PGW this year, with PGW sharing in the broader prosperity in the NZ agriculture sector,’’ he said.

In February, the company said 2018 net profit would be about 20% lower than last year’s $46.3 million, because of onetime gains from property sales in 2017.

Mr Glasson said net profit after tax from normal trading was forecast to be about 25% lower, reflecting the lack of significant property sales, an expected loss on currency hedges, and costs associated with potential Holidays Act remediation.

PGW shares closed down 3c at 67c on Friday. — BusinessDesk