Australia:Namoi Cotton pegs up profit forecast at $15.5mn

Australia is  leading cotton group Namoi Cotton Co-operative Ltd increased its 2006 forecast profit after tax from $13.5 million to $15.5 million. The result is based on Australian Accounting Standards comparable with those applied in the preparation of the Financial Statements for the year ended 28 February 2005.

The latest upgrade is a result of material incremental sales and improved shipping schedules negotiated since 12 July 2005, when the previous profit upgrade was released.

¡°CEO Mr Bob Bell stated that during a visit to Indonesia and Thailand earlier this week he received overwhelming support from mill customers in these major markets for Namoi Cotton and for its rejection of the unsolicited Queensland Cotton merger proposal.¡±

¡°These spinning mills can purchase in excess of 1 million bales of Australian cotton per annum and are clearly concerned with the potential reduction in choice, he added¡±

¡°Namoi Cotton is the only major Australian shipper dedicated exclusively to the marketing of Australian cotton. This market differentiation significantly underpins our continuing excellent results.¡± Mr Bell said.

The Namoi Cotton Board is continuing its examination of strategic initiatives in the best long term interests of Namoi Capital Stockholders and Namoi Grower Members. In particular it has directed management to review the dividend payout policy and to investigate the implementation of a buyback of Capital Stock.