Shares in Elders Limited (ASX:ELD) slumped over 9% in Monday's trading after the company cut its profit forecast for FY11 by up to half.
The company, which provides rural, financial and real estate services, reported a loss of $14.6 million for the first-half ended in March. But this was an improvement on the $165.9 million loss from 1H10.
Excluding one-off items including impairments due to cyclone damage, underlying profit was $1 million, compared to a $2.4 million loss.
Elders managing director Malcolm Jackman said the company's rural services operations grew underlying ebit by $12.5 million, notwithstanding a $6.6 million loss from its Elders Toepfer Grain joint venture.
Despite the signs of turnaround, the company has lowered its FY11 profit guidance to “at the low end of the current market range of between $7.5 million and $24.5 million.”
This company had previously forecast profit in the range of $15 million and $30 million, but said it was wary of “risks to earnings that are continuing to emerge.” The company recorded a $10 million loss in FY10.
ELD shares fell 9.09% in Monday's trading to $0.450.
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