THL downgrades profit again

By Phil Boeyen, ShareChat Business News Editor

Monday 12th February 2001

The country's biggest tourism company, Tourism Holdings, has further downgraded its forecast full year profit from $21 million to between $14 and $16 million.

It's the second time in a matter of months the company has dropped its annual profit forecast. Last November the company announced that the $26.8 million profit flagged in its investment statement would not be reached, and lowered the figure to $21 million.

THL says the new profit target of between $14 million and $16 million has come after reviewing the draft December 2000 result, sales figures for January 2001 and projected forward bookings for the remainder of the financial year.

The company says the unaudited draft six months result to December 2000 of $6.6 million net is down $1 million, or 13%, on last year's result, mainly due to reduced revenues from the Australian Rentals division.

Australian earnings before interest and tax for the period were down 30% compared to last year, while the New Zealand operations generated a 3% increase in EBIT despite a poor ski season, adverse South Island weather and higher fuel prices.

THL is due to make a full half-year announcement on February 27th.

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