Nufarm earnings forecast looking up

Agricultural chemicals maker Nufarm has upgraded its half-year earnings forecast before interest and tax, predicted to be 8 to 13 per cent above the period last year.

"Nufarm's results for the first six months are typically dominated by contributions from Australia and Brazil, which both experienced challenging market conditions during that period,” its statement to the ASX reads.

“Despite this, Nufarm has delivered margin expansion and EBIT growth."

Its half-year results will be announced in March. Underlying profit expected to be down $15 million (56.6 per cent) compared with 2015.

Nufarm expects restructuring costs will be about $95 million to $105 million, though these would lead to savings of $116 million a year in 2018.

“We set out this program 18 months ago. The first part of the review was the manufacturing footprint, the next phase was the review of the product portfolio," CEO Greg Hunt told Fairfax.

"We are delivering on what we said we would do, we are reducing our cost base, improving our margins and improving the efficiency of working capital."

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