Australia's AWB lifts H1 earnings forecast

SYDNEY, April 23 (Reuters) - AWB Ltd (AWB.AX: Quote, Profile, Research, Stock Buzz), Australia's main wheat exporter, on Wednesday raised its net profit forecast for the half-year to March 31 after a better-than-expected performance at its Landmark rural services unit.

AWB's shares reversed early losses to stand 3.7 percent higher at A$3.10 at 0237 GMT after it said first-half net profit would be between A$45-A$52 million ($42-$49 million)

The Landmark unit operates stores selling farming equipment and fertilisers. AWB's financial services and Australian commodities divisions had also been performing solidly, managing director Gordon Davis said.

However, AWB expected earnings at its international commodities division, which trades wheat on international markets, to fall significantly compared with the prior corresponding period.

The company posted a 53 percent drop in full-year net profit to $27.1 million in 2006/07, because of drought.

AWB also said on Wednesday that it had under active review a provision of A$26.1 million for a possible liability over litigation by Standard Chartered Bank against AWB (USA) Ltd.

This involves a longstanding dispute over a default by Indonesian buyers of a soybean deal. (Reporting by Michael Byrnes)