Fonterra Fund units hit record low after coop ditches first-half dividend, lowers earnings outlook

Thu, 28 Feb 2019

By Rebecca Howard Feb. 28 (BusinessDesk) - Units in the Fonterra Shareholders' Fund hit a record low after the dairy cooperative cut its forecast earnings and said it won't pay an interim dividend. Fonterra downgraded its earnings forecast to 15-25 cents per share from a previous forecast of 25-35 cents per share, blaming the increased milk price which saw it hike the farmgate price to its supplier-shareholders. The downgrade implies annual earnings of between $242-403 million in the year ending July, compared to the earlier projection...

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