Forum Archive Index - December 2001

["Viewpoint ." <viewpoint_@hotmail.com>]

Unlike Fisher & Paykel, who managed to get away with disasterous foreign 
exchange losses which cost shareholders the best part of $100M, Sanford soes 
not seem so lucky.

In the year to August Sanford got it all wrong again. Foreign exchange 
losses totalled $27.7m (compared to $5.1m the previous year) and was the 
most significant item to affect the year's result.

The directors pass the blame to 'all the experts who were predicting a 
substantial appreciation of the NZ dollar'  Even at the AGM the directors 
did not seem to take the blame for this debacle.

(Note to Capitalist - I hope that it is not the bank your dearest husband is 
VP of that gace this advice.)

Hidden away in the announcement of the annual result was 'foreign exchange 
losses in excess of forecasts'. Heavens above - the company were planning to 
make foreign exchange losses.

It must be a worry for any Sanford shareholders that in spite of a pathetic 
record over the last few years they are continuing down the path of covering 
a proportion of foreign exchange earnings.

This year they are still living in hope of a strengthening NZ dollar to 
justify the policy because 'discontinuing our forward cover policy would 
deny the Company future benefits when the NZ dollar strengthens."

Lets hope, for Sandford's sake, that the NZ dollar does not continue it long 
term downtrend since it was floated years ago.


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