Forum Archive Index - July 2002

["Tony Frodsham" <frodmann@hotmail.com>]

Didn't they get a new Chief Financial officer recently?

After the Enron/Worldcom debacles I read somewhere this week:

CFO:  Chief Fraud officer




>-----Original Message-----
>From: sharechat-owner@sharechat.co.nz
>[mailto:sharechat-owner@sharechat.co.nz]On Behalf Of lippy
>Sent: Friday, 5 July 2002 6:59 p.m.
>To: sharechat@sharechat.co.nz
>Subject: [sharechat] Transrail- The train has crashed
>
>
>       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.
>






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