28 Aug 2012

Fonterra forecast revised

4:14 pm on 28 August 2012

Fonterra on Tuesday announced a revised payout forecast range for the current dairy season - down 30 cents on the previous forecast.

The revised forecast includes a lower farmgate milk price - down from $5.50 to $5.25 per kilogram of milksolids.

Fonterra is required to consider its farmgate milk price every quarter as a condition of the Dairy Industry Restructuring Act.

Chairman Sir Henry van der Heyden said most of the downward pressure on the farmgate milk price forecast is due to the continuing strength of the New Zealand dollar.

Chief executive Theo Spierings said Fonterra's consumer businesses are also under pressure due to a difficult retail environment in Australia and New Zealand.

Because of that environment he said Fonterra has lowered its forecast net profit after-tax range of 40c to 50c per share, down from 45c to 55c cents per share.