Bumper demand to boost GrainCorp's profits

GrainCorp increases profit guidance for 2008-09 financial year to $42 million, $14 million more than previously anticipated

GrainCorp has increased its profit guidance for the 2008-09 financial year to $42 million after initially predicting it would reach up to $28 million.

GrainCorp Managing Director Mark Irwin estimates the company will receive between 9.2 and 9.4 million metric tonnes by the end of September, leading GrainCorp to re-evaluate its profit forecast.

"We have handled over 2.5 million metric tonnes of grain through our port terminals so far this financial year," Irwin says.

"Based upon forecast shipping demand provided to us by the dozen grain exporters we provide port terminal services to, we have increased our export tonnage forecast to more than 4 million metric tonnes of grain exports by the end of this financial year."

However, Irwin says that any signs of strength from the Australian dollar and a bumper harvest in the northern hemisphere may push profits down.

"Our export tonnage assumptions are based on forward vessel nominations and bookings, and any significant change to these may have an impact on the tonnage of exports we handle," he says.

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