Elders has warned it expects to slash about 150 jobs, or 10 per cent of its workforce, as it continues a long-running plan to return to being a pure agribusiness.

The 174-year old rural services company forecasts it will post an underlying net loss for the full year of up to $39 million, due to weaker-than-expected live cattle exports.

The company is focussing on its core rural trading businesses in Australia and New Zealand after offloading its car and forestry businesses.

It expects the restructure will reduce its operating costs by $25 million each year.

Chief executive Malcolm Jackman says jobs will have to go from the 2,200 workforce for the company to return to profit.

"This will be the third time we've had a reorganisation probably in the last three years and really it is just a necessity in terms of being able to maintain the profitability of the organisation," he said.

"We have struggled over the last 12 months particularly in last spring and last summer with very very tough market conditions."

Elders says it has reached a deal with its lenders to extend loans worth more than $300 million to the end of next year.

The company's share price surged ahead after the announcement.

At 12pm (AEST), it had climbed by 15.8 per cent to 11 cents.

 

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