Nufarm will miss profit forecasts by 15pct

Nufarm Ltd. fell the most in more than 12 years in Sydney trading after cutting its full-year profit forecast because of lower-than-expected weed killer sales.

The shares dropped 12 percent after Melbourne-based Nufarm said profit before one-time items will be 15 percent less than its previous forecast of A$220 million ($175 million) for the year to July 31. Net income was A$137.9 million last year.

Sales of glyphosate in the past six weeks have been “well below” those a year earlier in the U.S. and Australia, its two biggest markets, as farmers delayed planting, Nufarm said in a statement. Sales margins have also fallen because of increased competition, the company said.

In the six states where most of the U.S.’s spring wheat is grown, 89 percent of the crop was planted as of May 31, compared with the previous five-year average of 98 percent, according to U.S. Department of Agriculture data.

The cut to Nufarm’s forecast comes after Incitec Pivot Ltd., Australia’s largest fertilizer maker, last month reduced its full-year profit prediction as demand for crop nutrients declined.