Timbercorp has revised its profit forecast from an estimated $57 million down to approximately $44 million following a review of its current projects and assets.
Full announcement below:
Revised profit forecast and results release date
Melbourne - Nov 11, 2008:
Timbercorp Limited (ASX: TIM)
On 1 July 2008, the company announced an expected net profit after tax of $53 to $57 million for the year ended 30 September 2008.
Following a review of current projects and assets, the Directors have today resolved to raise a one off provision of $19 million ($13.3 million after tax) relating to the Company's 2004 and 2005 table grape projects. As a result of the provision and subject to finalisation of the 2008 accounts, the Directors currently estimate a net profit after tax of $40m to $44m for the year ended 30 September 2008. The provision and final result is subject to completion of the audit.
The 2008 result will be released to the market on Thursday 27 November 2008.
2004 and 2005 Table Grape Porhect Provision
In the 2004 and 2005 financial years, Timbercorp offered table grape projects for a total area of 412 hectares. These projects comprise less than 5% of Timbercorp's horticultural investment offerings. Over the past two years, Timbercorp has removed and replaced most of the initial varieties planted in order to improve performance of the table grape assets with further capital works still required.
Until the new varieties produce near mature crops, the Directors have taken a conservative view of future cashflows for the term of the projects and raised a one off non recurring provision of $19 million ($13.3 million fater tax).
