Hot, dry weather during December and January in key growing areas has resulted in lower sales and depressed margins for agricultural chemicals and seeds supplier Nufarm.
Nufarm on Friday said it expects to meet its first half guidance for earnings before interest and tax of $50 million to $60 million, but towards the lower end of the range.
"Unfavourable seasonal conditions persisted in Australia during December and January with hot and dry weather in key growing regions," Nufarm said in a statement.
"This has resulted in unusually low sales activity and depressed margins."
The performance of the Australian operations were broadly expected to be in line with the first half of the previous fiscal year.
Businesses in Europe, North America and Asia were performing in line with expectations.
In the seeds business, dry summer conditions in Australia had resulted in lower sales of sorghum and sunflower products.
Nufarm said that despite the challenging conditions in Australia, it was confident of generating earnings growth over the full year.
Nufarm expects to report its results for the six months to January 31 on March 26.
Shares in Nufarm dropped eight cents to $4.09.
Share
