Australia: Grain storage and handling company GrainCorp flagged on June 9, 2004 an on-market buyback of up to 10 % of its stock over the next six months, and upgraded forecasts for this year's grain crop. The company said it would begin buying its own stock from June 23 until December 23, when the buyback could be extended another six months, Nationwide News posted on June 6.

Chairman Ron Greentree said the move would strengthen GrainCorp's balance sheet position and demonstrated the board's confidence in the future.

Chief operating officer Joe Di Leo said the company now expected grain production to register at above-average levels for the 2004-05 harvest. "We have now received enough rain to ensure the successful sowing of crops across the majority of our operating areas in Queensland, NSW and Victoria. Around 70 per cent of grain-growing areas in the eastern states have now been planted," he said. Optimism among growers had improved amid forecasts for rain this week, he added, particularly in dry parts of Victoria.

GrainCorp's profit forecast for the 12 months to the end of September 2004 remained at $24 million to $26 million, following a loss of $18.2 million a year earlier.

10 June, 2004