UPDATE 2-AgFeed Industries swings to quarterly loss; shares fall

Tue Aug 10, 2010 11:25am EDT

* Q2 loss/shr $0.07 vs profit of $0.03/shr year-ago

* Revenue falls 2 pct

* Shares off 13 pct to touch 52-week low (Recasts; adds details, updates share movement)

Aug 10 (Reuters) - AgFeed Industries Inc (FEED.O) swung to a quarterly loss after severe floods hampered operations at the animal feed and pork company's farms in China, sending its shares down 13 percent to a 52-week low.

AgFeed, which has its primary operations in China, said the movement of feed and live animals was severely disrupted in the second quarter and this led to the loss of over 16,000 live animals in addition to the planned culling of 3,000 sows.

"We are still in the process of repairing the infrastructure damaged in and around our facilities in Fujian, Jiangxi and Hainan," Chairman Songyan Li said.

The heavy rains during the summer triggered flash floods, inundated crops, disrupted traffic and telecommunications in South China, resulting in direct economic losses of around $12.13 billion. [ID:nTOE65P01A] [nTOE65L03D]

The worst hit provinces and regions included Fujian and Jiangxi.

The company, however, said it was optimistic about its operating performance for the balance of the year, as hog prices have started to climb up.

For the second quarter, the company reported net loss of $2.95 million, or 7 cents a share, compared with a profit of $1.23 million, or 3 cents a share, a year ago.

Revenue fell 2 percent to $37.7 million.

Shares of the company were down 20 cents at $2.56 in morning trade Tuesday on Nasdaq. They touched a low of $2.40 earlier in the session. (Reporting by Renju Jose in Bangalore; Editing by Jarshad Kakkrakandy and Maju Samuel)

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