Shares in Fonterra Fund fall 10 pct on earnings downgrade
WELLINGTON Dec 11 (Reuters) - Shares in New Zealand-based global dairy giant Fonterra Ltd trading fund plunged as much as 10 percent on Wednesday to a record low of NZ$5.49 after it slashed its forecast of earnings and its dividend forecast.
The co-operative reaffirmed its milk price at a record high NZ$8.30 ($6.90) per kilogram of milk solids, but lowered its full-year dividend forecast to 10 NZ cents per share from 32 NZ cents forecast, and lowered its forecast earnings before interest and tax (EBIT) for the year to July 2014 to between NZ$500 million and NZ$600 million.
Shares in the shareholder fund, which are based on the dividend payouts to farmers and do not give a direct investment in Fonterra, last traded at NZ$5.50 each.
(Reporting by Naomi Tajitsu)
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