News briefs: Glanbia, Fonterra speculation

Glanbia sticks to profit targets Dairy and ingredients group Glanbia says that its expects to recover from 'significant' raw material costs increases witnessed during 2007 on the back of its performance during the first fiscal half.

The company, which also produces cheese products, said that while it expects some volatility during the year in the global dairy market, it nonetheless remains on track to meet its full year expectations.

John Moloney, group managing director, said that improved profitability within its consumer foods operations, a stable agricultural segment and growth in its US food ingredients arm had all been key growth drivers over the period.

"For the full year, we expect to continue to build on our excellent 2007 performance," he stated.

"The strength of our business portfolio, combined with our continued focus on operational excellence gives us the confidence that we are on target to meet current market expectations for double digit growth in earnings per share."

In its Irish operations, the company said its agribusiness division had managed to weather unprecedented input costs for product such as feed and fertiliser.

Through the company's US nutritional operations, the minerals and vitamins pre mix business posted a strong performance over the period, the group stated.

Fonterra may seek purchase approval Fonterra hopes to enter the race to acquire Australia-based dairy group Dairy Farmers amidst competition from rivals like Kirin, according to news reports.

The group has entered into talks with the Australian Competition and Consumer Commission in order to obtain permission to table a bid for the company, a report in The New Zealand Herald newspaper has said.

Although Fonterra has yet to officially confirm any possible deal, the purchase of Dairy Farmers it expected cost between A$800 million (€483m) and A$1 bn (€604m), the report says.