Wilmar sees $230 mln net loss in Q2, cites bad weather and volatile markets
SINGAPORE, July 19 (Reuters) - Singapore-based Wilmar International Ltd, the world's largest palm oil processor, warned it expected to report a second-quarter net loss of around $230 million as bad weather and volatile markets hurt oilseeds, grains and sugar business.
Wilmar, one of the world's biggest soybean buyers, said on Tuesday it was hit especially hard in soybeans after unexpected flooding in Argentina affected the country's harvest.
The company's sugar business was squeezed by a delay in harvesting due to rain, and accounting mark-to-market losses on hedges as a result of higher prices, Wilmar said.
Dry weather in Australia in the early part of the year was also expected to reduce the volume of cane crushed in 2016 compared with the previous year.
"The tropical oils segment and consumer products sub-segment continued to perform satisfactorily," the company said in its profit warning statement.
The company reported a net profit of $239.4 million for the three months ended March, versus $232 million a year earlier.
Wilmar announces its second-quarter results on Aug. 11. The shares closed flat at S$3.35 on Tuesday. (Reporting by Marius Zaharia; Editing by Kenneth Maxwell)
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