Nufarm Ltd (NUF) is a crop protection company, with operations spanning the globe. It aims to produce products designed to protect crops from damage caused by weeds, pests and disease.
Late yesterday, NUF lowered its FY10 net profit guidance to $55 million – $65 million, from the previous $110 million – $130 million.
This follows on from previous downgrades, meaning NUF has been one of the key shares to sell in recent months.
NUF based its downgrade on weak seasonal conditions resulting in poor demand for its crop protection products.
As a result of a weak operating environment, NUF stated that it was facing added margin and price pressures.
Although NUF remained in a trading halt throughout the day of the announcement, it was one of the worst performing stocks in the Australian share market today.
NUF will remain will also remain one of the stocks to watch over coming months to see if management can turn the company’s fortunes around.