Origin Enterprises: says 2010 earnings may decline

Dublin / IE. (oe) Origin Enterprises PLC said fiscal 2010 earnings per share may decline by as much as ten percent. The Irish agribusiness and food company posted a loss for the twelve months to July 31 of 56,8 million EUR compared with a year-earlier profit of 44,7 million EUR after writing down the value of land. Full-year revenue was little changed at 1,5 billion EUR. Chief Executive Officer Tom O´Mahony said in a statement (PDF) spending by farmers is under pressure from declining income, in part caused by «sustained weakness» in dairy prices. Farmers are also suffering from banks «tightening credit», O´Mahony said. He added that earnings will drop by five to ten percent. The company cut the value of land it owns in Cork by 70 percent to reflect the decline in Irish property prices. It had planned to develop the 32-acre site as offices and apartments. «The writedown is reflecting the reality that the development time is going to be over a longer period», O´Mahony said. Origin Enterprises is a leading player in the Agri-Nutrition sector in Ireland, the United Kingdom and Poland and has leading Ambient Food and Cereal Milling businesses in Ireland. Majority shareholder in Origin Enteprises (71,4 percent) is the Swiss Aryzta AG.