AWB forecast a return to profit in 2010 after announcing its first loss since at least the 1990s, thanks to the cost of closing its Brazil division and writing down the value of a fertilizer joint venture.

Gordon Davis, AWB's chief executive, said Australia's former wheat export monopoly could expect to report pre-tax profits of Aus$95m-115m for the year to the end of next September.

The figure excludes interest savings of Aus$20m-25m expected from borrowing reductions enabled by a recent capital raising.

"We've restructured and recapitalised our balance sheet. So we're now in a position where growth can be a priority," Mr Davis said.

'On the cusp'

The forecast came as AWB reported a Aus$250.8m (US$233m) loss for the year to the end of September 2009, dragged lower by losses in Brazil and writedowns at its Landmark financial services arm and on its stake in Hi-Fert, a fertilizer business.

"AWB looks to be on the cusp of significant evolution," Grant Saligari at Credit Suisse said.

"Planned divestments would see earnings changing compositionally and the company's balance sheet would be significantly trimmed."

Wilson HTM analysts said: "We believe AWB's share price will benefit from a re-rating in relation to the transformation to a simpler, lower risk business."

A further re-rating would require evidence of a turnaround at Landmark, and approval of AWB's talks with a "global commodities company", rumoured to be Gavilon, over a partnership in commodities management.

AWB shares closed down 0.4% at Aus$1.255 in Sydney.