POOR sheep and wool prices have hit the bottom line of Tasmanian-based Ruralco Holdings.
The company today advised the Australian Stock Exchange its full year net profit was likely to slump by up to 10 per cent due to lower revenue from its wool and livestock businesses.
"Weaker sheep and wool prices, coupled with a reduction in wool volumes have impacted the profitability and contribution of our agency businesses,'' managing director John Maher said today.
"The financial performance of our Tasmanian residential real estate business has also been severely affected by that state's deteriorating economy.''
Ruralco said its net profit were likely to be between five and 10 per cent below the $15 million profit recorded for 2011-12.
Mr Maher said the company's earnings before interest and tax were also expected to be up to five per cent weaker.
Ruralco is due to report its latest earnings results on November 20.
The profit warning comes just weeks after Ruralco made failed overtures to Elders to discuss a possible merger between the two agribusinesses.
Elders is also expected to report in the next few weeks.
