The heading in Theage.com.au, “Elders loss doubles $395m on forestry charges”.
Not good news when the share price after last year’s carnage, has basically halved from May to November this 2011 year.
The CEO says it is actually good news though as the loss-making forestry group is being sold-off. (I guess that means it still isn’t gone(?))
Despite the CEO saying the “underlying profit” is much better, a dividend isn’t being paid, so I guess that means there is still a lot of “underlying” stuff with the “visible” stuff yet to show itself in real terms to investors.
It would be interesting to compare the ‘underlying’ rural business with competitor Roberts Ltd’s successful model. i.e. Even if Elders was to (eventually) get rid of the forestry and auto businesses, would its model with so many fixed costs be any good anyway?
Some questions that I would ask of each:
– What is the ratio of livestock to real estate expenses?
– What is the ratio of livestock to real estate revenues ?
– What is the ratio of merchandise to livestock
etc…
What do you think?
Please leave your comments below
Rural Australia 
Too Tired said
Elders share price about 6 months ago was around 40c today its about 23c.
What are they doing with all the money they generate our of livestock and real estate and franchising?
Perhaps the predictions last year of their demise were well-founded!(?)
Jacko said
Jackman leaves after getting Elders back to its rural roots. But will that old model make money anyway? http://www.businessspectator.com.au/article/2013/11/27/agribusiness/tough-reign-jackman-fading-elders