RURALCO has made a profit of $13.8 million, a fall of between 5-10 per cent for the year.The company has blamed lower revenue from its wool and livestock businesses.
Ruralco, the Tasmanian-based company, said its rural supplies, grain marketing and water and environment businesses all generated greater revenue and profits during the fiscal year.
Managing director John Maher said the outlook for this year was "cautiously positive''.
"Farm cash flows have been under pressure and much depends on growers capturing the benefits of current grain prices to build confidence levels into the 2012/13 financial year,'' he said.
''Relatively dry conditions persist in the summer cropping and horticulture regions of the country while subdued sheep, lamb and wool prices compared to last year are still impacting trading conditions, particularly in the southern markets.''
However, Ruralco's grain marketing and water-related businesses were confident of a good year ahead.
Chairman Richard England said the company's board did not yet know whether it would bid for Elders' rural services business.
The company, Elders' biggest shareholder, had approached its rival earlier in the year seeking a merger.
Elders rebuffed the move, saying it was not a formal offer.
Mr England was monitoring the situation but had not yet made a decision.
"If Ruralco did participate, we would be disciplined and would not pursue any acquisition unless it was value-accretive for Ruralco shareholders,'' Mr England said.
"Regardless of the outcome, Ruralco was well-positioned to benefit either from a synergistic acquisition of (Elders) rural services or continuing to win market share if sold to another entity.''