July 23, 2012
The Age
Goodman Fielder says its full-year earnings are likely to be at the lower end of its forecast.
Goodman said its normalised earnings before interest and tax (EBIT) and significant items was expected to be at the lower end of its $230 million to $245 million range.
Its accounts for its 2012 financial year would also take a hit of about $200 million in relation to the valuation of some of its businesses.
‘‘While trading conditions and external markets remain very challenging, Goodman Fielder today confirms that it expects normalised EBIT (pre significant items) to be within this range at the lower end,’’ Goodman said in a statement.
‘‘Increased competitive pressure, including price reductions for supermarket private label bread and the resulting pricing pressure on proprietary branded bread, together with higher labour and logistics costs continue to impact earnings in the Australia/New Zealand Baking division.’’
The breads and spreads maker said its annual accounts would take a $110 million charge relating to the valuation of its Australia/New Zealand Baking arm and its Home ingredients New Zealand business.
Another charge of $80-90 million would also be incurred relating to the businesses Goodman Fielder has under review.
Both charges relate to a review of the company’s asset-carrying values amid the ongoing restructure of its businesses.
The restructure aims to save the company, whose brands include White Wings, Helga’s, Meadow Lea and Praise, $100 million by 2014/15.
Goodman said restructure costs for the 2012 financial year were expected to be about $70-75 million, most of which related to costs associated with 600 redundancies.
Goodman said the planned sale of its Integro commercial oils division and its NZ milling business was progressing well, with the company engaged in talks with several parties.
AAP
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