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SYDNEY, May 23 (Reuters) - Australian farm services and automotive parts company Futuris Ltd said on Friday it expected a year profit in line with expectations after closing non-core businesses and cutting costs to offset tough market conditions.
Futuris said its core businesses were tracking to expectations for the first 10 months of the year, and tipped a fiscal 2003 net profit of A$45-A$52 million (A$30-A$34 million).
Year earnings for the year to end-June, 2003 were expected to be more than A$100 million, including A$60 million in one-off items from the sale of its shareholding in fertiliser business Incitec and charges arising from a review of operations.
The forecasts were based on trading in the 10 months to April 30, 2003. Futuris said the forecasts were within market expectations.
Shares in the group slipped 0.6 percent to A$1.58 in a slightly firmer overall market. The stock hit a year-high of A$1.75 earlier this month.
Futuris' first-half earnings dived 69 percent due to Australia's severe drought but it said in February the second-half would be within expectations if the dry spell broke.
The company has closed non-essential operations and sold some assets to combat the downturn.
"This response has enabled the business to produce an acceptable underlying earnings result despite the adverse conditions," Futuris said in a statement.
Elders rural division, which typically provides more than half Futuris's earnings, has been hit by reduced livestock prices, poor growing conditions and a decline in rural spending.
Futuris said there had been reasonable rains recently in most agricultural areas, although the late rainfall was inadequate for a normal season.
($=A$1.52) ((Reporting by Michael Smith, editing by Richard Pullin; [email protected]; Reuters Messaging: [email protected]; + 612 9373 1815))