(Reuters) - GrainCorp Ltd <GNC.AX>, Australia's biggest listed bulk grain handler, on Thursday raised its full year underlying net profit and underlying core earnings outlook, helped by a strong performance from its international grain trading book and global malt business.
The firm said in a statement it now expects underlying net profit of A$60 million to A$75 million ($43 million to $54 million) for the year to end-September 2018, above the A$50 million to A$70 million range it re-confirmed in May.
GrainCorp also said it expects full year underlying core earnings of A$255 million to A$270 million, up from prior expectations of A$240 million to A$265 million.
Despite the improvement, GrainCorp said its grains business has experienced "ongoing challenging operating conditions" in eastern Australia.
"We expect a considerable decline in grain production in eastern Australia in FY19 with production again skewed to Victoria and southern New South Wales," Managing Director and Chief Executive Mark Palmquist said.
A drought across Australia's east coast has intensified after near record-low levels of rain across much of the region over the past five months, the country's weather bureau said on Wednesday.
(Reporting by Aaron Saldanha in Bengaluru; Editing by Cynthia Osterman and Richard Pullin)
