26-03-2014 00:38 AM | New Zealand

Fonterra first half earnings drop, dairy prices shrink margins

New Zealand's Fonterra reported a 41 percent fall in first-half earnings on Wednesday as the farmer-owned co-operative's margins were hit by higher costs, too much milk, and a lack of capacity to process higher-yielding products.

The world's largest dairy exporter, which controls about a third of global dairy exports, said normalized earnings before interest and taxes (EBIT) fell to NZ$403 million ($345 million) for the six months to January 31, compared with NZ$693 million a year ago.

It said net profit after tax fell 53 percent to NZ$217 million even as revenues climbed 21 percent to NZ$11.3 billion, as the company has struggled to capitalize on record-high world dairy prices.
Full Story : Reuters