AWB Ltd., an Australian grains marketer, has cut its full year profit outlook for FY 2010. The company said that it has cut its outlook on the tough conditions for the grain marketing business. AWB also believes that the sale of its Landmark Financial Services loan and deposit books would make a negative impact on its profit margins this year. The shares of the company were reported down by 11% on this news today.

AWB said today that the company reduced its outlook for 2010 as much as 39%. Now the company expects the Profit before tax and onetime items to be in the range of $A85 million to $A110 million. Earlier AWB was expecting it to be in the range of $A115 million to $A140 million.

"We expect that the domestic grain marketing result will be weighted toward the second half of the financial year but for the full year it is still likely to be significantly lower than the prior comparative period," said Gordon Davis, Managing Director of AWB.

AWB said that the sale of Landmark Financial services loan and deposit books would cut its profit by $A7 million to $A10 million. The company also said that the increases in global wheat stocks, lower transaction margins and reduced price movements had also impacted badly on the profitability of the company this year.

On the reduced guidance, the share of the company fell 11% today, decreasing the most in last one year and closed to 93.5 cents on the Australian stock exchange.