The old Danish trading company EAC revised its expectations upwards for the overall year result of 2008. This was stated by the company in a stock exchange announcement.
Pre-tax profit forecast is to be 625 million dollars, which were previously expected 490 million kroner. The uncertainties that dogged the half-yearly report.
“The prices of pigs and sale of EAC Foods’ main products have stabilized at relatively high levels. Furthermore, there is strong demand from retail stores of the important Christmas products at favourable prices”, the company writes.
The turnover for the whole group is expected to grow to 5.4 billion dollars against 5.2 million previously expected. Operating profit (EBIT) is expected to reach around 640 million dollars which were previously expected 540 million kroner.
During the 3rd quarter EAC has received 20 million dollars in compensation from Arla Foods (See the link below). The claim for compensation was made in 2003, after EAC had to withdraw two Arla- brands of baby milk powder in Thailand, because there was found particles of lubricants. Milk products were manufactured by Arla to the EAC subsidiary Dumex, and the withdrawal of the products resulted in bad publicity in Thailand.
http://epn.dk/industri/landbrug_fodevarer/article1442511.ece
