Sumitomo writes down losses on Nufarm
Sumitomo Chemical has made a one-time write-down of goodwill related to its investment in Nufarm, citing the “significant” decline in the Australian company’s share value. The amortisation resulted in an extraordinary loss of ¥28,700 million ($356 million at the current rate) for Sumitomo in the six months ended September 30th 2010. Sumitomo acquired a 20% stake in Nufarm in March ( Agrow No 587, p 2). However, Nufarm’s sales and profits have been hit by falling prices for the herbicide, glyphosate, and adverse weather conditions ( Agrow No 601, p 3).