SHARES in Nufarm have plummeted to an 18-month low after $215 million was wiped from its market capitalisation in the wake of a big fall in its profit, and a disappointing outlook.
Shares in the agricultural chemicals supplier were 82 cents, or 17.19 per cent, lower at $3.95 on Thursday.
On Wednesday, after the share market closed, Nufarm reported a 53.5 per cent fall in net profit to $8.4 million for the six months to January 31 and slashed its outlook.
Hot, dry conditions in Australia had reduced demand for crop protection products, and Nufarm was also hurt by foreign exchange losses.
Nufarm managing director Doug Rathbone said that agricultural companies were always exposed to the weather, but seasonal conditions in Australia were exceptionally bad.
Morningstar analyst Peter Rae said Nufarm's downgraded full year outlook showed the company remained exposed to cyclical demand from agricultural markets and had limited pricing power in some of its products.
Nonetheless, Nufarm's financial result did not change his overall view of the company.
"It has a sound global crop protection business with strong distribution capabilities and key market positions in its core products," Mr Rae said in a research note.
Mr Rathbone said on Wednesday that Nufarm was unlikely to make up the lost ground from its first half and poor start to the second half of the year.
Underlying full year net profit was expected to be below last year's and within a range of $80 million to $95 million.
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