Warrnambool Cheese and Butter Factory has downgraded its profit outlook due to volatility in the global market, telling the stock exchange today that its full-year net loss is likely to exceed its earlier forecast of $10-12 million.
But such is the state of volatility facing the company that it cannot accurately forecast its net loss.
The WCB statement to the ASX said the factors influencing its deteriorating outlook were:
- the continuing weakness in global dairy prices;
- the impact of the stronger Australian dollar;
- some loss of milk supply; and
- the costs relating to the joint venture proposal with National Foods.
Meanwhile, WCB has extended the tenure of chief executive John McLean to at least mid 2010.
Chairman Frank Davis said the critical need for the company in the current environment was to focus on its core business and to service its suppliers.
Mr McLean's continuing presence at the helm was critical to that strategy, he said.
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