Southcorp is in line for earnings in fiscal 2004 to match the forecasts it made in September last year.

Last year, Australia's largest winemaker said that it expected to earn more profit from each bottle of wine it sells, forecasting a growth in profit margin of between 3% and 4% from a cost-cutting and business improvement programme.

In a statement released today, CEO John Ballard said that the increase in value of the Australian dollar shouldn't affect his expectations made in 2003. "I believe the pace of improvements will be stepped up during the 2005 and 2006 financial years," he said.

The company's interim results will be released on 27 February.