Food conglomerate Glanbia said 2009 was a "difficult" year, but it expects to return to earnings growth this year.
Earnings per share is predicted to be 30 to 31 cents for the year, in line with revised guidance announce earlier in 2009.
In a trading statement, the company said the downturn in global dairy markets seen in the first half of the year, lower US cheese prices and weak consumer demand led to "an unprecedented trading environment".
Glanbia said it is planning further cost reductions in 2010 in its Dairy Ireland unit, with a net provision of about €15 million provided for in 2009, mainly relating to redundancies. In November, the company announced it was seeking up to 65 voluntary redundancies between plants in Ballyragget, Co Kilkenny and Virginia, Co Cavan.
Glanbia said it expected a net exceptional credit after tax of about €17 million for the year.
It's interim trading statement that month also reiterated a warning that results for its dairy segment in Ireland would be considerably lower overall than in 2008. Glanbia repeated that warning today, cautioning that a reduction in agribusiness would also be lower.
"For most of the year the decline in global dairy markets created a very difficult environment for the Irish dairy ingredients business. Prices and returns for dairy processors and suppliers were below the cost of production, which gave rise to a major first time loss in Irish dairy ingredients for the full year," the firm said in its statement.
"Consumer products is expected to report a reasonable result for 2009 underpinned by a significant internal cost reduction programme. In the latter part of 2009, in response to a very competitive Irish food retail market, Consumer products reduced prices to customers on a range of product lines," it said.
US Cheese and Global Nutritionals is expected to deliver results ahead of 2008.
A strategic review of the Group's pension arrangements was completed in 2009. The revisions to the overall Group pension arrangements, which are currently being finalised,
The group's pension arrangements were also reviewed last year, reducing its liabilities and resulting in a 2009 exceptional credit of about €50 million.
Glanbia remained cautious with its outlook for the coming year.
"Trading conditions improved somewhat in the later stages of 2009 with an uplift in global dairy and US cheese markets. However, markets remain volatile and consumer sentiment is fragile," the company said.
The group said current forecasts were for earnings growth of 6 per cent to 8 per cent in 2010.
Shares in Glanbia rose 2,4 per cent to €2.92 by 12.30pm on the Dublin market.
