News | Business
25 Jul 2014 0:21
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • Sport
  • Weather
  • Videos
  • Ski Report
  • Finance
  • Shopping
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • Auctions
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Fonterra lifts milk payout forecast

    Fonterra says it will pay its farmer shareholders $8.30 per kilogram of milk solids for the milking season, 50 cents up on its previous estimate.


    Fonterra
    Fonterra

    Fonterra has hiked its forecast payout to farmers for a second time in as many months while warning earnings in the first half will be "significantly lower" than in 2013.

    On the eve of the release of its 2013 full-year results, Fonterra on Tuesday lifted its forecast payout by 50 cents per kilogram of milk solids to $8.30/kgms on continuing global demand for whole milk powder, adding to the 30 cents per kgMS increase last month.

    Fonterra kept its estimated dividend of 32 cents per share, despite the prospect of "significantly lower" first-half earnings in 2014, as it can draw upon its balance sheet and cash flow performance, chief executive Theo Spierings said in a statement.

    "The higher cost of goods will make it more difficult to drive earnings growth in our consumer and food service businesses in the first half of this financial year.

    "Prospects for the second half look more positive for our consumer businesses, but remain uncertain for NZ Milk Products."

    The NZ Milk Products unit was embroiled in the false food scare last month, when whey protein concentrate was thought to be contaminated with a potentially dangerous strain of bacteria. Ultimately a harmless bacterium was identified.

    Fonterra will announce its 2013 results on Wednesday, and is expected to miss prospectus forecasts with earnings before interest, tax and one-time items of about $1 billion in the year ended July 31.

    Units in the Fonterra Shareholders' Fund fell 0.8 per cent to $7.12 on Tuesday, and have gained 2.1 per cent this year.


    NZN




    © 2014 NZN, NZCity


     Other Business News
     24 Jul: Xero's ambitions lift NZ stocks
     24 Jul: Boutique brewer Moa raises more funds
     24 Jul: Prisoners rebuild quake-damaged homes
     24 Jul: Former McCain boss takes over at Sealord
     24 Jul: Kiwi sheds a cent on Wheeler's words
     24 Jul: Kiwi steady ahead of OCR announcement
     24 Jul: RBNZ may not touch OCR brake soon
     Top Stories

    RUGBY RUGBY
    Sharks confident of toppling Crusaders More...


    BUSINESS BUSINESS
    Xero's ambitions lift NZ stocks More...



     Today's News

    Rugby League:
    Boyd in the right place: Bennett 21:56

    Entertainment:
    Snoop Dogg smoked cannabis at the White House 21:55

    Entertainment:
    Lana Del Rey claims she's slept with a lot of guys in the industry 21:25

    Rugby League:
    NRL Round 20 preview 21:17

    Entertainment:
    Kate Hudson thinks she has an "unconventional" life 20:55

    Entertainment:
    Shia LaBeouf is determined to stay sober for Brad Pitt 20:25

    Business:
    Xero's ambitions lift NZ stocks 18:56

    Living & Travel:
    Beagle boost for biosecurity 18:36

    Business:
    Boutique brewer Moa raises more funds 18:06

    Entertainment:
    Zoe Saldana thought husband's tattoo of her face "the most romantic thing" 17:33


     News Search






    Power Search


    Click for info on advertising with WebAds
    © 2014 New Zealand City Ltd