10/05/2012 (Reuters) - Wilmar International Ltd , the world's largest listed palm oil firm, reported on Thursday lower-than-expected first quarter earnings, hit by weak margins at its largely China-based oilseeds and grains business.

Wilmar, which owns palm oil plantations in Indonesia and Malaysia as well as sugar operations in Australia, said net profit for January-March fell 34 percent to $255.9 million, compared to $386.7 million a year ago.

The earnings were well below the average forecast of $365 million from nine analysts polled by Reuters.

Excluding non-operating items, Wilmar would have posted a 50.6 percent drop in net profit to $205.6 million, it said.

"All the other key business segments of the group, especially palm and laurics, are expected to perform satisfactorily for the rest of the year while oilseeds crushing margin in China is expected to remain challenging due to excess capacity," the company said.