ABB Grain Ltd Reports Six-Month Profit

SYDNEY - May 24/04 - SNS -- The Australian barley marketing board, ABB Grain Ltd, reported an after tax profit of A$12.439 million for the six months ending 31 March 2004.

In making the results announcement, ABB chairman Trevor Day said the company would pay a fully franked interim dividend of 12 cents per B-Class share on 5 July, with a record date of 18 June.

The company's directors have decided to suspend ABB's dividend reinvestment plan for the July dividend, as part of the process towards the merger of ABB with AusBulk and United Grower Holdings.

Day said that the half-year results achieved by the company were very pleasing, with a positive outlook for the full year.

"The $12.4 million net profit after tax for the interim period represents a 37.5% increase from the previous year's interim results," Day said.

"We are confident that we will reach our net profit after tax forecast of $18-$19 million for the full 2004 financial year."

Day said that the increase from last year's half-year results was in large part a result of the increased volume of grain purchased this year.

"Large harvest production from the 2003-04 season, combined with ABB's expansion into the eastern states meant we were able to accumulate more grain from a wider area," Day said.

"ABB's increased marketing activities from a broader grain product base also contributed significantly to the company's results, as did growth in the container trading of grain."

Day said another factor that influenced the results was the profit derived from the financial services business of ABB, with the use of ABB's financial products for 2003-04 reflecting a return to more normal levels after the 2002-03 season drought.