UPDATE 2 – Australian Nufarm Reduces 2018 Pre-Tax Earnings Forecast Due to Crop Dryness

* Nufarm Reduces Profit Forecasts of Australian Division

* Says Viable Harvest Season Is Unlikely in Many Areas of the Country

* The division generally accounts for one-fifth of the province's revenues. company

SYDNEY, July 23 (Reuters) – Agricultural chemicals company Nufarm Ltd. has trimmed its forecast for its underlying results of the 2018 fiscal year after declining dry weather demand in Australia crop protection, down 10%.

Irregular dry weather across Australia, one of the world's largest agricultural exporters, has hampered many of the country's rural companies, although Nufarm is the first to recognize the production of harvests such as that wheat could fall drastically.

Nufarm said that he had forecast an increase in farmers' demand for products used after the emergence of crops, after many producers were forced to sow in dry soils.

But the company said that she was forced to reevaluate.

"Following feedback from Nufarm's teams in the regions that were communicating with producers and distribution partners … it was determined that the market had reached a turning point, and that it was now unlikely that 39, a viable harvest season will occur "Nufarm said in a statement. Underlying earnings before interest and taxes (EBIT) for the year ending July 31 were now expected to be A $ 255 million to A $ 270 million ($ 190 to $ 201 million), compared to 302, $ 3 million a year ago.

Nufarm had already downgraded its forecast in May, citing harsh climatic conditions in Australia / New Zealand, Europe and North America.

The company said Monday that its Australian and New Zealand operations suffered from "one of the driest falls since the records began more than 100 years ago."

Expected EBIT of A $ 5 to A 10 million, down from A $ 51.6 million a year ago.

Australia is the second largest business area of ​​Nufarm, a market that accounted for just over a fifth of the company 's revenue last year.

Nufarm shares fell 10% to their lowest level in two years after the announcement.

The company added that it expects a low forecast demand and a current supply surplus to limit sales and margins during the 2019 fiscal year.

Nufarm said that she was also examining the implications of depreciation for the Australian company.