Shares in Nufarm have surged after the agricultural chemicals and seed supplier lifted its annual profit by 15 per cent and gave a positive outlook.
Nufarm shares jumped to close up 66 cents, or 9.34 per cent, at $7.73 on the upbeat news as the broader market shed two per cent of its value.
The company on Wednesday reported a net profit of $43.2 million for the 12 months to July 31, up from $37.7 million a year earlier.
Despite challenging market conditions in some regions, Nufarm benefited from a focus on more profitable products, cost savings and disciplined selling policies.
Earnings rose despite a one-off after-tax hit of $73.8 million related to restructuring, factory closures, job cuts and the dropping of underperforming products.
"We feel confident that 2016 will be another year of solid earnings growth," Nufarm chief executive Greg Hunt said.
"New product introductions and a more focused approach to key crop segments will help drive underlying growth."
Mr Hunt said lower crop prices and the desire for farmers to reduce costs would affect the total value of crop protection sales in most markets, particularly in the US and Brazil.
Nonetheless, Nufarm expects earnings growth in the US, and growth in local-currency earnings and market share in Brazil.
Earnings from the Australian market are expected to continue to recover as a result of cost-cutting initiatives already under way.
Nufarm has included the likely impacts of an El Nino weather pattern in its forecasts.
An El Nino typically results in drier-than-normal spring conditions in eastern Australia.
But the weather pattern also causes wetter conditions in other parts of the world, so demand for insecticides and fungicides may increase.
Mr Hunt said Australia had already experienced dry spring conditions for the last three years.
Consequently, Nufarm does not consider impacts from El Nino to be a material risk to earnings growth in Australia in 2016.
Nufarm said market conditions were generally weaker in 2014/15 due to a fall in crop prices and lower demand for crop protection products, especially insecticides.
Nonetheless, Nufarm lifted margins in all its major regional markets.
Brazil and Europe generated strong results, earnings recovered in Australia and the US, but earnings from Nufarm's seed technologies business were lower.
NUFARM LIFTS PROFIT, EXPECTS POSITIVE YEAR AHEAD
* Net profit of $43.22m, up 14.6 pct
* Revenue of $2.74b, up 4.4 pct
* Unfranked final dividend of six cents, up from five cents
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