Sanford warns of disappointing first half profit

The Fish Site
by The Fish Site
17 April 2007, at 1:00am

NEW ZEALAND - Fish exporter Sanford warned of a disappointing first half result, after a high New Zealand dollar ate into profit and weaker United States markets dampened sales.

Eric Barratt

Revenue was down 2 per cent for the six months ended March 31, as disappointing sales in the second quarter reversed a 15 per cent rise in the first three months.

"While demand has been strong for many species in Europe, weaker markets in the United States have resulted in lower volume sales of orange roughy, greenshell mussels and toothfish in the first half this year compared to the same period last year," Sanford managing director Eric Barratt said.

Catches and aquaculture production levels had been satisfactory, at 6 per cent ahead of last year.

Earnings before interest, tax, depreciation and abnormals was expected to increase slightly for the six months ended March 31.

However, foreign exchange losses of at least $7 million, compared with similar-sized gains a year earlier, would result in lower normalised after-tax earnings.