Parmalat has blamed economic problems at home and abroad for a cut in its profit forecast for 2008.

The Italy-based dairy giant said "a major decline" in the Italian market and worsening economic trends in South Africa and Australia had led it to predict full-year EBITDA would be down 5% this year on 2007.

"Damages suffered in the above mentioned markets have been only partially compensated by the positive trend of other subsidiaries and by the operational actions already implemented and in course of implementation," Parmalat said in a statement yesterday afternoon (14 July).

The company, however, said it sees turnover rising 3% this year.