Sydney, Oct 4, 2007 (ABN Newswire) -
The impact of the drought is being felt at ABB Grain, with uncertain crop conditions to cut its full year profit guidance in half. The South Australia-based grain handler says it's unlikely to achieve its previously stated guidance of $16 million to $19 million in net profit after tax. It says the figure is likely to fall into the range of $5 million to $8 million. The company's managing director says government decisions on grain stocks and pricing, and uncertainty with current crop conditions are causing extreme volatility on Australian and world grain markets. ABB Grain's best profit result over the past five years was in 2006.
Australian electronics retailer Harvey Norman is considering bidding for New Zealand chain Noel Leeming - worth about $300 million. The Financial Review reports Leeming's owners, Gresham Private Equitym, has also approached JB Hi-Fi and Woolworths, but no formal sale process is underway for Leeming. The newspaper says Harvey Norman may run into competition issues if it bids, because it's already the second largest electronics retailer in New Zealand, with at least 20 percent of the market. Harvey Norman's profits have climbed steadily since 2003.
Webjet will raise $15 million in additional equity capital, to make a revised bid for online travel agency Travel.com.au. Webjet has told the stock exchange it's placed 10 million ordinary shares at $1.50 per share in order to raise the additional capital. The share placement comes just days after Webjet's $42.3 million takeover bid for TVL was trumped by a $50 million rival bid from Wotif.com. Webjet is offering 10 cents cash and 0.23 Webjet shares for each Travel.com.au share. Webjet's has recorded profits since 2005 after being in the red the two years before.
The full report is available at the following video and audio links.
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http://abnnewswire.net/lnk/O180O572Source: Finance News Network © 2007
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