Shares in Elders Climb Despite the Drought
SHARES IN ELDERS CLIMB DESPITE THE DROUGHT
"At a local level, it is certainly very tough for many parts of the country," Mr Allison said
"From a business viewpoint, the level of diversification ... from a product and geography perspective means the overal impact has been limited."
Due to the dry conditions Elders expects farmers to plant fewer crops between now and the end of March, resulting in lower demand for fertiliser and crop protection products.
The recent acquisition of chemical supplier TitanAg is expected to deliver $7 million in earnings int eh coming year, and wool prices are anticipated to continue growing due to a decline in production and increased global demand. Cattle prices are also expected to ease further as production increases, but lamb prices are set to rise on strong export demand. The company will pay a fully franked final dividend of 9c per share, up from 76.5c a year ago.
Mr Allison said the company's return on capital continues to be above the 20 per cent target, and was 24.2 per cent for the year.
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