Wrightson boosts third quarter profit

By Phil Boeyen, ShareChat Business News Editor

Thursday 18th April 2002

A strong third quarter has helped rural services firm Wrightson (NZSE: WRI) to lift profit for the nine months ended March by 45%.

The company reports that net profit for the nine-month period was $16.6 million compared with $11.7 million for the same time last year.

The nine-month result is also a significant lift in earnings compared with the company's interim result of $6.3 million.

Chairman, John Palmer, says the improvement reflects a strong performance across the group's New Zealand businesses and its Australian seeds business.

"Ours is a seasonal business, and traditionally we earn around two thirds of our net profit in the second half of the financial year.

"Our performance over the last nine months supports this pattern, and we expect it to continue to year end."

Mr Palmer says the board expects the current momentum to be reflected in the year-end result. At the end of the third quarter the company was already well ahead of last year's final net profit of $10.7 million.

The chairman also noted that the company had no explanation for the recent decline in its share price. The stock closed at $1.28 on February 20, the day before the company released its interim result, but has recently been trading in a range between $1.05 and $1.10.

There has been speculation in the market that profits for agricultural companies may have peaked as world commodity prices retreat from the highs of last year.

Wrightson will announce its full year result in late August.

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