Glanbia forecasts 17% earnings rise for 2008

Food group Glanbia expects adjusted earnings per share growth of about 17 per cent for 2008, in line with analysts’ estimates.

The company said all businesses – with the exception of its Irish food ingredients unit – had performed in line with, or better than, expectations.

A sharp fall in world diary prices in the second half of the year due to the imbalance between market pricing and raw material costs "severely impacted" on this unit

Glanbia said world dairy markets are increasingly volatile and prices were declining. "The difficult trading conditions, with lower world dairy demand, reflect the impacts of the current global current economic and financial crisis," the company said in a trading statement.

Glanbia's managing director John Moloney said 2009 was set to be "a very challenging year given the severe impact of the ongoing economic and financial turmoil on both developed and emerging economies".

The company is continuing its €16 million rationalisation programme which will see job cuts and the sell-off of its pigmeats business. The company said it remained focused on achieving market consensus earnings growth of 12 per cent this year.

At 11am shares in Glanbia were almost 7 per cent lower at €2.65.

In a note to investors Davy Stockbrokers said Glanbia's joint ventures had made an excellent contribution, driven in particular by the performance by Southwest Cheese in the US.