(Adds details on guidance, shares fall)
SYDNEY, Feb 26 (Reuters) - Australian wheat exporter GrainCorp Ltd GNC.AX said it expects volumes to shrink in the 2016 fiscal year, generating net profit broadly in line with the previous year, thanks to a below average winter crop and fierce competition globally.
In a statement on Friday, the company said it expects to export 3 million tonnes during the current year, down from 3.5 million tonnes in 2015. The company had not previously given a forecast for 2016.
It added that it expects underlying net profit between $40 million and $55 million for the year, compared $45 the previous year, citing low grain stocks in eastern Australia, increased availability of grain globally and cheap ocean freight thanks to a lower oil price.
Should GrainCorp realise the low-end of the guidance, it would be the lowest annual net profit since 2008.
Shares in GrainCorp fell as much as 7 percent following the guidance, touching more than a one-month low.
Grain production across Australia's east coast has been stunted by dry weather as the worst El Nino curbed yields, while ample global supplies and decreased competitiveness of Australian supplies into traditional Asian markets have also weighed on GrainCorp.
"These headwinds have dampened the immediate outlook, but not the benefits of the progress we have made across the business on our strategic initiatives," said Chief Executive Officer Mark Palmquist in the statement, issued before the start of trading.