Graincorp Ltd has posted a first half loss after the drought impacted its earnings, and announced a restructure of its business that may result in acquisitions.
The agribusiness group booked a net loss of $6.466 million for the half year ended March 31 as a prolonged drought on the east coast of Australia reduced crop sizes.
The result compared to a profit of $5.551 million in the fiscal 2007 first half.
Graincorp said the restructure follows a review of it assets.
"The result clearly shows that Graincorp needs to diversify income streams, it validates our Ridley acquisition strategy and provides an imperative to identify and pursue growth," chief executive Mark Irwin said.
The board of Ridley Corporation Ltd last week said it intended to reject Graincorp's scrip offer.
Graincorp has offered one of its shares for every nine Ridley shares, valuing Ridley at around $416 million.
Graincorp's new business structure announced on Friday will see it split into four divisions: storage and handling, ports and new business, marketing, and functional areas.
Mr Irwin said the firm was entering a new development phase after the removal of the bulk export wheat monopoly from AWB Ltd, its bid for Ridley and a recent five-year rail deal with Pacific National.
"The rationale for the restructure is simple," Mr Irwin said.
"There are a range of opportunities opening up in the Australian agribusiness sector and it's our vision to become a leading player.
He said the restructure would place a greater emphasis on the handling of bulk commodities.
While the first half result was disappointing, it was in line with Graincorp's full-year forecast, Mr Irwin said.
Aside from the drought, he said the fundamentals of the business were strong.
The new storage and handling division will focus on integrating AG Haul Road and Rail with upcountry grain handling sites.
Ports and new business incorporates Graincorp's nine ports, containerised grain exports, AG Plus and Hunter Grain.
Marketing deals with international grain sales.
Graincorp said functional areas of the business will be restructured to reflect the changes with several staff taking on new or different rolls.
Graincorp did not declare an interim dividend.
