PROMINENT grain company, GrainCorp, has posted an after-tax loss of almost $20 million over the past year due to the impact of continued drought and the global financial crisis.
Managing director Mark Irwin said the result was in line with "previous market guidance'' and similar to the previous year's drought-affected loss.
But he expressed confidence the company would return to profit over the next year.
Releasing the company's financial results for the year to end-September today, Mr Irwin said earnings had risen strongly due to a record sorghum crop and Hunter Grain and GrainCorp Merchandise operations.
"Overall earnings were, however, dragged down by interest costs, reflecting higher interest rates and higher inventory funding costs (resulting from record grain prices) and by a disappointing grain marketing result,'' he said.
The impact of drought in many areas of Queensland, NSW and Victoria had slashed the size of last year's winter, which had an effect on the company's grain receivals and carry, Mr Irwin said.
Carry-in stocks were down by 75 per cent at record lows of 1.2, but a record 2.1 million tonnes from the 2008 summer sorghum crop lifted grain receivals to 6.5 million tonnes, he said.
GrainCorp's earnings before interest, tax and depreciation were $51.3 million, or almost 61 per cent up on the previous year.
Its corporate interest bill was $22.7 million while inventory interest costs were $24.3 million.
Net losses after tax were $19.9 million.
Mr Irwin said seasonal conditions pointed to a return to much improved winter harvests in Queensland and and northern and central NSW, with another strong summer sorghum crop in prospect.
But the outlook was tempered somewhat by conditions in southern NSW and Victoria, which were still drought-affected, he said.
