Carr's Milling Industries PLC - Interim Management/AGM Statement Q1 2008/09

Carr's Milling Industries Plc., the fully-listed agriculture, food and engineering group, said its profit in the first quarter of the current financial year ending Aug. 29, 2009, was ahead of budget.

The company said it remained on target for the full year, despite trading conditions becoming more difficult.

"Overall, the Group remains well-placed for the current year, albeit without the benefit of exceptional trading conditions in its largest Division, Agriculture," the company added.


In compound and blended feed, Carr's has maintained its market share. However, volumes are down, reflecting a reduction in bought-in feed following the higher yields of last year's cereal harvest. With feed raw materials bought forward at higher than spot prices, margins have started to be squeezed.

Market share gains were made in the feed block businesses and revenues were ahead in each of the UK, Germany and the USA.

Since November, fertiliser sales have been much reduced in expectation by farmers of selling price reductions which may turn out to be overestimated.

First quarter revenue from retail and machinery sales is ahead of both budget and last year.

Further growth was achieved in the fuel oil business, with increases in both volume and revenue.


As predicted, this year has started much better than last for flour, following the price rises put through in September and November 2007. The first quarter profit is ahead of last year and in line with budget. The market remains competitive and market share is being maintained. Forward wheat contracts are in place to safeguard margins.


The Engineering businesses were busy and profit in the first quarter was ahead of last year. The order book remains strong and the enquiry level is encouraging.

Carr's shares were +5 (+1.2%) at 435 pence in early afternoon trade.