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PGG Wrightson hit by Uruguay flood

NZN 20/04/2016 Edwin Mitson

Agricultural products and services company PGG Wrightson is warning investors its seed cleaning site in Uruguay is caught up in flooding.

The company told shareholders in February that its South American business was expected to perform better between January and June.

In a statement to the NZX on Wednesday, chief executive Mark Dewdney said that was no longer anticipated.

"The strength of beef prices gave us reason to believe we would see a recovery in our Uruguayan business at the full year," he said.

"While it remains too soon to quantify the full impact of the current flooding, we are now not expecting to see that full recovery in the current financial year."

Even so, Wrightson maintained its outlook for full-year operating earnings before interest, tax, depreciation and amortisation of between $61 million and $67 million, saying it still believes the guidance range is appropriate.

Both the office and the machine processing room at the seed cleaning site near Rosario in Uruguay were hit by flooding.

All staff were safely evacuated after moving as much seed and plant as possible to higher ground.

Mr Dewdney said the physical damage was not expected to be material, but the broader agricultural sector in the country would be hit.

Businesses in New Zealand and Australia continued to perform well, the company said.

Shares in Wrightson fell 1.2 per cent to 40.5 cents and have fallen 7.8 per cent in the past 12 months.

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