By NZPA
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Friday 2nd August 2002 |
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The Hawke's Bay company has revised down its profit forecast, blaming lower than expected stock flows.
Richmond's share price dropped 10c to close at $2.10, near its year low of $2.05.
Richmond, which produced a disappointing interim loss of $1.5 million to March, said the full year result would show strong, positive operating cash-flow.
Chairman Sam Robinson said the previous confidence was based on third quarter results being in line with the second quarter and the expectation of a modest loss in the traditionally quiet fourth quarter.
"The reality has been lower than anticipated third quarter profitability and a larger forecast loss for the fourth quarter. This has been caused by lower North Island winter processing and some weaker product markets."
Richmond will be hoping for a better year in 2003, having suffered a heavy $15.2 million loss in the first quarter of 2002, lower livestock supply and unhelpful weather patterns.
It also hopes to resolve its shareholding dispute with Dunedin rival PPCS so a permanent CEO can be appointed, after John Loughlin announced he would step down in October.
The case is set down for August 6 in the High Court in Christchurch and is expected to run for nine days.
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