TOMORROW, the month of reckoning begins for Nufarm, whose financial year ends on July 31. Nufarm has stuck to its bullish earnings forecast even though US competitor Monsanto warned lower prices for glyphosate, or Roundup, would hit its sales.
Nufarm chief Doug Rathbone understands the concern but says, this time, things are different.
When Nufarm had to follow Monsanto with a downgrade last year it was because its costs were too high, but its costs are now on a par with the lower prices it is fetching, The Australian Financial Review reports.
So everything should be fine – unless you speak to the analysts, who are all the more jittery after the severity of a downgrade by rural services group Elders, a company that, funnily enough, blamed lower agrichemical prices for part of its woe.
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