TAKEOVER target ABB Grain has cut its profit forecast for the second time in just seven weeks. ABB chief executive Michael Iwaniw said the company had been hurt by slower malt deliveries to the Asian region and Aust farmers becoming cautious in their buying of fertilisers, agricultural chemicals and merchandise.
ABB said yesterday its profit forecast for the 12 months ended September 30, had been cut to an underlying profit after tax, of $43 million to $53 million. This forecast follows a May 19 forecast of profit after tax, of $53 million to $63 million and an earlier forecast in February, of $63 million to $73 million.
The fresh profit downgrade announced yesterday comes two months before a crucial vote by about 19,000 farmer shareholders and 2000 other shareholders on a $1.6 billion takeover bid by Canadian giant Viterra.
ABB and Viterra have outlined the strengths of the proposal, including a stronger balance sheet of the combined entity, a pledge to have open port access and a plan to continue to invest in infrastructure.
South Australian Farmers Federation chief executive Carol Vincent told The Australian Financial Review yesterday the organisation had been pushing for a grain export port at Adelaide’s Outer Harbour to be excluded from the deal and had been advising ABB share holders to vote against the Viterra deal unless that happened.
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