As expected farm chemicals group Nufarm reported a first-half loss of $40 million, thanks to a fall in sales of its key herbicide.
The loss had been forecast in a guidance update earlier this month at a shareholder meeting.
But despite the loss, Nufarm directors said the company still expects to report a full-year profit between $80 million and $100 million.
"The second six months of the current financial year are expected to show that recovery is well underway across important areas of the business," the company said.
"No dividend will be paid at the half year.
"The dividend position will be reviewed when the full year result is considered.
"That result is expected to show a strong recovery in profitability in the second six months of the financial year," the company said.
The release of the results came after trading finished.
The shares eased 7c ahead of their release to $8.63.
The company said the result "includes a negative impact associated with material items of $35.8 million, mostly glyphosate related losses."
"The company’s operating result for the period was a loss of $4.2 million."
Sales fell $250 million in the half year from a year ago.
"Excluding the impact of material items, operating earnings before interest and tax (EBIT) were $19.1 million, 85% down on the $130.2 million recorded in the first six months of the previous year," the company said in the statement.
"Group sales were $890 million (compared with $1.24 billion in the previous corresponding period).
"The reduction in sales in the current period reflects the price reduction in glyphosate globally, and adverse climatic conditions in the Northern Hemisphere.
"The Company considers that market share has been maintained. 33% of first half revenues were generated in Australasia (2009 1H: 28%); 19% in Europe (20%); 24% in North America (29%); and 24% in South America (23%)."
Sumitomo Chemical of Japan is in the midst of a tender offer to buy up to 20% of the company at $14 a share, a big premium to Nufarm’s last trade.
