Dairy group Ornua - formerly the Irish Dairy Board - has reported earnings before exceptional items of 58.8m for 2015, up 18% on the previous year's numbers. Ornua is Ireland's biggest exporter of butter, cheese and milk powders, trading in 110 markets.
Kevin Lane, CEO of Ornua, said he was pleased with the results against the backdrop of what has been an incredibly challenging market. "All major producing regions have been increasing milk supply and, together with weak demand worldwide, it has led to a significant fall in prices," he said.
The co-op has announced that it will suspend the milk levy on Irish dairy farmers from May 1. "We are acutely aware of how challenging the environment is for farming families. Milk prices have fallen significantly and we've introduced a number of measures to alleviate the pressure. One is the abolition of the levy which should put 6m back into the industry. We're also paying out 29m in bonuses to members, including a special 15m bonus."
Mr Lane acknowledged that trading in 2015 was against the backdrop of a weak euro, which boosted Irish exports. But that situation is changing. "The UK is a very big market and accounts for a quarter of our total turnover. The currency going against us creates a headwind on profitability. However, we have a number of strong businesses and we're going to have to make up the differential elsewhere." He said a vote by Britain to leave the EU would not be a positive development for dairy exports. However, he welcomed the decision to hold the vote in June, thus shortening the period of uncertainty. "We can maintain our export business if they vote to exit, but the costs of doing business there will increase and there will be new competition," he said.
Mr Lane said Ornua had shifted its focus from Russia to the Chinese, Middle Eastern and African markets, but was hopeful that they would re-enter the Russian market when sanctions are lifted.
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MORNING BRIEFS - Shares in Mitsubishi Motors have fallen by over 15% in late trade in Tokyo this morning. It comes as the carmaker is expected to brief the media on the 'improper handling' of fuel economy data. The industry is facing more intense regulatory scrutiny after Volkswagen's admission last year that it had falsified emissions tests in the US.
*** Computer company Intel has announced that it will cut its 100,000 strong work-force worldwide by 12,000. It is not known if the 5,000 workers at its plants in Leixlip, Cork and Shannon will be affected. The company is reducing its dependence on the declining personal computer market and focusing on cloud and smart technologies. News of those Intel jobs cuts will not have come as a huge surprise to analysts. Figures released on Monday showed that global PC shipments fell by 11.5% in the first quarter, according to the research firm IDC.
*** Yahoo - another tech company with considerable woes - last night reported a $99m quarterly loss to the end of March. Revenues were down over 11.5% to just over $1 billion in the period. The company is reviewing offers from potential bidders. It announced in February that it was looking to sell its core internet business.
*** Car sales continued to show strong growth in the first three months of the year. According to the quarterly motor industry review from SIMI and DoneDeal, car sales were up 28% in the first three months to 82,830. New car sales are expected to top 150,000 for the full year, delivering in excess of 1.3 billion for the exchequer. Cheaper fuel costs are being offset by higher insurance costs, which are up by nearly a third according to this review.
*** Argentina returned to the international my response borrowing markets after 15 years yesterday. The country was frozen out of debt markets after defaulting in 2001 and for the last decade it was involved in a court battle with so-called 'holdout investors' who were looking for a full return on their investment. Buenos Aires raised $15 billion in bonds ranging from three to 30 years duration at an interest rate of 6.5% to 8%.
Kevin Lane, CEO of Ornua, said he was pleased with the results against the backdrop of what has been an incredibly challenging market. "All major producing regions have been increasing milk supply and, together with weak demand worldwide, it has led to a significant fall in prices," he said.
The co-op has announced that it will suspend the milk levy on Irish dairy farmers from May 1. "We are acutely aware of how challenging the environment is for farming families. Milk prices have fallen significantly and we've introduced a number of measures to alleviate the pressure. One is the abolition of the levy which should put 6m back into the industry. We're also paying out 29m in bonuses to members, including a special 15m bonus."
Mr Lane acknowledged that trading in 2015 was against the backdrop of a weak euro, which boosted Irish exports. But that situation is changing. "The UK is a very big market and accounts for a quarter of our total turnover. The currency going against us creates a headwind on profitability. However, we have a number of strong businesses and we're going to have to make up the differential elsewhere." He said a vote by Britain to leave the EU would not be a positive development for dairy exports. However, he welcomed the decision to hold the vote in June, thus shortening the period of uncertainty. "We can maintain our export business if they vote to exit, but the costs of doing business there will increase and there will be new competition," he said.
Mr Lane said Ornua had shifted its focus from Russia to the Chinese, Middle Eastern and African markets, but was hopeful that they would re-enter the Russian market when sanctions are lifted.
***
MORNING BRIEFS - Shares in Mitsubishi Motors have fallen by over 15% in late trade in Tokyo this morning. It comes as the carmaker is expected to brief the media on the 'improper handling' of fuel economy data. The industry is facing more intense regulatory scrutiny after Volkswagen's admission last year that it had falsified emissions tests in the US.
*** Computer company Intel has announced that it will cut its 100,000 strong work-force worldwide by 12,000. It is not known if the 5,000 workers at its plants in Leixlip, Cork and Shannon will be affected. The company is reducing its dependence on the declining personal computer market and focusing on cloud and smart technologies. News of those Intel jobs cuts will not have come as a huge surprise to analysts. Figures released on Monday showed that global PC shipments fell by 11.5% in the first quarter, according to the research firm IDC.
*** Yahoo - another tech company with considerable woes - last night reported a $99m quarterly loss to the end of March. Revenues were down over 11.5% to just over $1 billion in the period. The company is reviewing offers from potential bidders. It announced in February that it was looking to sell its core internet business.
*** Car sales continued to show strong growth in the first three months of the year. According to the quarterly motor industry review from SIMI and DoneDeal, car sales were up 28% in the first three months to 82,830. New car sales are expected to top 150,000 for the full year, delivering in excess of 1.3 billion for the exchequer. Cheaper fuel costs are being offset by higher insurance costs, which are up by nearly a third according to this review.
*** Argentina returned to the international my response borrowing markets after 15 years yesterday. The country was frozen out of debt markets after defaulting in 2001 and for the last decade it was involved in a court battle with so-called 'holdout investors' who were looking for a full return on their investment. Buenos Aires raised $15 billion in bonds ranging from three to 30 years duration at an interest rate of 6.5% to 8%.