GRAIN handler, storer and marketer, GrainCorp, says an expected improvement in the farming season and the new exporting environment will see the company return to profitability in fiscal 2009.
The company said it would not declare a final dividend.
Managing director Mark Irwin said in a teleconference today, however, that prospects were positive for the new fiscal year.
In September, the company had forecast grain receival in fiscal 2009 between 7.5 million tonnes and 10 million tonnes.
"Now, at that level we make a profit for two reasons. One is that you'll have an export surplus, certainly we get the tonnes through our own system," he said.
"The other thing is that after about ... five million tonnes of domestic consumption, the balance is either stored or exported and eight of the nine ports our ours."
Mr Irwin said he was confident GrainCorp would achieve a much better return from its ports in fiscal 2009.
"The exporting environment isn't just that we can export bulk wheat. It's because we can help others export bulk wheat through our supply chain, through our ports and through our rail," he said.
In fiscal 2008, earnings before interest, tax, depreciation and amortisation (EBITDA) were up 60.8 per cent to $51.3 million on the previous year.
Mr Irwin said the earnings growth reflected a record sorghum crop.
Earnings had been affected, however, by interest costs, higher inventory funding costs due to record grain prices, and a disappointing grain marketing result.
"The effect of the drought in many areas of Queensland, NSW and Victoria significantly reduced the size of the 2007 winter crop harvest, and thus grain receivals and carry," Mr Irwin said in a statement on Wednesday.
The company would not offer profit guidance until the current harvest was further advanced, but Mr Irwin said better seasonal conditions pointed to a much improved winter crop harvest in Queensland and northern and central NSW.
Conditions in southern NSW and Victoria remained drought affected.
AAP
