Australian Agricultural Has Loss After Costs Gain

By Madelene Pearson

Aug. 12 (Bloomberg) -- Australian Agricultural Co., the nation's largest cattle rancher, reported a first-half loss after a year earlier one-time gain wasn't repeated and as operating and financing costs increased.

The company had a net loss of A$2.2 million ($1.9 million), or 8 cents a share in the six months ended June 30, compared with a profit of A$5.9 million, or 2.3 cents a share a year earlier, the Brisbane-based rancher said today in a statement.

Farmers and ranchers globally are facing higher operating costs from fuel to feed after prices for oil and grains reached records this year. Cattle and cropping costs rose 14 percent in the half, the company said today.

``Total operating overheads for the group contain higher costs in fuel, labor and feed grain compared to the prior period,'' the company said today in a statement to the Australian stock exchange. ``Grain prices have also remained high, and whilst the company has forward purchased for 2008, the average prices are higher than the prior year.''

Australian Agricultural fell as much as 15 cents, or 5 percent, to A$2.86 on the exchange and traded at A$2.97 at 10:12 a.m. in Sydney.

The company named Stephen Toms as chief executive officer, it said in a separate statement. Toms joined the company in 2004 as chief financial officer and has been acting in the role of CEO since May.

To contact the reporter on this story: Madelene Pearson in Melbourne on mpearson1@bloomberg.net