New Zealand's Fonterra says no new developments to account for share slump

[BENGALURU] The performance of Fonterra, the world's biggest dairy exporter, is not where it needs to be, but there are no new operational developments to have caused Thursday's share slump, chief financial officer Marc Rivers said on Friday.

Shares of Fonterra's two listings in New Zealand, its Co-operative Group and its shareholder's fund, closed at record lows on Thursday, down 6.4 per cent and 5.3 per cent, respectively. The stock typically tends to trade in narrow ranges.

"While the share price does not impact the Co-op's balance sheet or our ability to operate and pay our bills, it does impact our farmers' balance sheets," Mr Rivers said in a statement.

He added that the company's performance "is not where it needs to be," months after Fonterra cut its annual earnings guidance as it struggles to cut costs and curb debt.

It is also dealing with drought conditions across Australia and at home in New Zealand, which has crimped output so far this year.

In May, Fonterra said it was undertaking a review of two Chinese farm hubs and was reviewing options for a possible sale of its stake in a Brazilian venture with Nestle.

"We're doing everything we can to turn that performance around," Mr Rivers added.

REUTERS