Dublin, July 14 - Irish food group Glanbia said it saw limited prospects for a recovery in global dairy markets until late this year or early 2010 after reiterating its forecast for a fall in 2009 earnings on Tuesday.
Glanbia cut its guidance for adjusted earnings per share (EPS) to between 30 and 32 euro cents in April, compared with a 2008 result of 35.9 cents, and said on Tuesday a challenging H1 period would lead to results significantly behind those of 2008.
The Kilkenny based company, a major manufacturer of cheese for McDonalds and Burger King , told Reuters last month that it expected to return to earnings growth next year as global recession encouraged consumers to trade down.
Half-year losses in Food Ingredients Ireland, which makes butter, cheese and other products from 1.4 billion litres of milk a year, will have a detrimental effect on the group's performance for the half and full year, it said.
As previously noted, Glanbia's Agribusiness unit, which makes animal feed and seed grains, will see a decline in profit and sales due to increased pressure on farm incomes.
All other parts of the group are performing in line with expectations including U.S. body building supplement maker Optimum, which Glanbia bought in August, while its nutritionals business is achieving strong organic growth, it added.
Glanbia, Europe's biggest supplier of mozzarella cheese for pizzas, said it would remain focused on delivering a strong cost performance after implementing a major rationalisation programme in the first half of the year.