15 Nov 2012

Graincorp rejects takeover

11:35 am on 15 November 2012

Graincorp has rejected a $A2.7 billion takeover offer as too low after lifting its annual profit by 19%.

The takeover proposal was made by Archer Daniels Midland Company of the United States on 22 October.

Graincorp said on Thursday it made a net profit of $A204.9 million in the year to September 30, up from $A171.6 million in the previous 12 months.

AAP reports all business units, storage, marketing, malt and mills, posted a strong performance in the year to September.

Chief executive Alison Watkins said the current eastern Australia harvest was generally proceeding well.

"Production forecasts average about 18.3 million tonnes," she said in a statement on Thursday.

Meanwhile, Graincorp also outlined about $A250 million in spending to achieve about $A110 million in annual earnings growth by the end of fiscal 2016.

AAP reports it will increase spending on strategic projects in its storage and logistics operations, and integrate its oil crushing and refining operations to strengthen its oils business.

Graincorp will also implement new measures to improve efficiency in its port operations.

The company declared a fully-franked final dividend of 35 cents per share.