16th May 2006 11:33
Glanbia PLC16 May 2006 GLANBIA REITERATES GUIDANCE FOR THE FULL YEAR - HALF YEAR RESULTS WILL REFLECT DOWNTURN IN IRISH MILK PROCESSING. 16 May 2006 - As trading conditions currently stand the Group expects to meetmarket guidance for the full year, Glanbia Chairman, Michael Walsh, reported tothe Annual General Meeting in Kilkenny today. Mr Walsh noted however that the half year results will be adversely impacted bya reduced performance from Irish Food Ingredients, the Group's milk processingbusiness in Ireland. This business is experiencing a downturn in profitability,mainly due to the effects of lower EU supports for the dairy sector, with theimplementation of EU Mid Term Review, allied to higher energy costs. Other areas of operations are performing satisfactorily. In Ireland,Agribusiness and Property and Consumer Foods are in line with expectations. TheInternational operations, including Food Ingredients USA and Nutritionals, areperforming as anticipated. The Group is also pleased with progress to date inits major plant commissioning projects - South West Cheese (SWC) in Clovis, NewMexico and Nutricima in Nigeria. The phasing of results from SWC will beweighted towards the second half of the year, reflecting the ramp up of theseoperations. As a consequence results from associates and joint ventures will belower at the half year compared with the corresponding period last year. 'Undoubtedly, in 2006, the market environment and industry circumstances remainchallenging in Ireland and we are focused on enhancing competitiveness,productivity and market positions in those operations. We expect thedifficulties in Ireland to be offset by a good performance from ourInternational operations and successful commissioning of our strategic jointventures. As a large consumer of energy we remain concerned about thevolatility in energy markets. Overall, as trading conditions currently exist, weexpect to meet market guidance for the full year and continue to make solidoperational progress in the strategic development of Glanbia.' John Moloney,Group Managing Director 16 May 2006 Ends For information For information: Geraldine Kearney Group Corporate Communications Director Tel: 056-7772241 or mobile 087-2319430 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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