AWB today forecast interim net profit after significant items to fall up to 55 per cent from the prior corresponding half year profit of $22.3 million.
AWB expects first half profit before tax and significant items to fall 55 per cent to 65 per cent from the prior corresponding period's $64.6 million.
AWB's forecasts assumes that current slow trading conditions will continue in the coming two months.
"The full year profit will largely depend on improved seasonal conditions in the second half of the financial year,'' AWB managing director Gordon Davis said.
AWB shares fell 42.5 cents, or 20.83 per cent, to $1.615 at 12.56pm AEDT..
Mr Davis said the ongoing drought had adversely affected trading conditions in Victoria, South Australia and New South Wales.
Operating conditions had been solid in Western Australia and Queensland.
AWB's Landmark rural services business had especially been impacted by the drought, but it was well positioned to take advantage of better seasonal conditions in the second half.
"Due to the drought in south-eastern Australia, AWB has received lower volumes than expected through its Grainflow operations, albeit higher than the prior corresponding period,'' Mr Davis said.
