Forum Archive Index - July 2002

["lippy" <rathel@xtra.co.nz>]

      This just announced to stock exchange in response to shareprice enquiry. Basically lots of writedowns on the way and other costs.  Heres the end of the announcement. I last sold out at 4.15 and have had some good trades on transrail over the last few years, its really fallen out of bed this time though.  Looks like its going to turn really ugly next week.

     

      

Response to a share price enquiry from the NZSE Market Surveillance Panel.

We (NZSE) note your company's share price this afternoon (4 July 2002) was
quoted on the Exchange at $2.76 per share. This is a decrease of 46cps
(14.28%), since commencement of trading on 20 June 2002.

Tranz Rail Holdings have responded with the following:

1. Is your company in possession of information which, if generally available
to the public might reasonably be regarded as an explanation of the price
variation?

As signalled to the market with the third quarter release, following the
completion of outsourcing and other restructuring initiatives, the Company
intends to make the necessary accounting adjustments to reflect the changes
to its operations. In addition, the Company is evaluating other accounting
policies as signalled with the release of the third quarter results.
Accordingly, the Company expects to make substantial asset write downs in the
2001/02 year. The scope of the write downs has not yet been finalised and we
are therefore not in a position to release any further information at this
time.

The Company believes that market expectations for the current fourth quarter
last year. There are a number of variances between those quarters that make
comparison difficult:
- Reduced revenue in the order of $4 million mainly from reduced forestry
revenue and non-recurring loss on sale of assets.
- Fourth quarter 2002 revenue also needs to be adjusted for the effects of
Tranz Scenic revenue included in fourth quarter 2001.
- Increased costs of $6 million of which is attributable to a credit cost
reclassification associated with The Interisland Line fleet reconfiguration
in the fourth quarter 2001.
- Adjustment for Tranz Scenic costs not included in the fourth quarter 2002.

Accordingly, the Company's fourth quarter results for the period ended 30
June are expected to be significantly below that of market expectations. We
have not yet finalised the year end results and are not in a position to
provide the market more detailed information. As soon as this information is
available it will be released to the market.