By NZPA
|
Friday 5th July 2002 |
Text too small? |
Responding to a Stock Exchange query about a 14.3 percent fall in Tranz Rail's share price since June 20, the company said it expected to make substantial asset writedowns in the 2001/2002 year -- which would bite into its fourth quarter result.
"The scope of the writedowns has not yet been finalised and we are therefore not in a position to release any further information at this time," Tranz Rail said.
The company said it intends to make an announcement regarding its expectations for the 2002/03 year within the next month.
Tranz Rail first signalled the writedowns when it released its third quarter results in May.
That quarter was also hit by restructuring costs, with the net after tax profit for the three months ending March 31 tumbling to $2.8 million from $13.1 million the same quarter a year earlier.
Shares in Tranz Rail, which is in the process of restructuring itself as a long-haul freight operator, closed today down 3 cents at $2.75 -- a year low. The shares have lost 46 cents since June 20.
The announcement was made after the Stock Exchange closed.
Tranz Rail said there were a number of variances that made comparison between the fourth quarter of 2001 and this year difficult including:
* 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 needed to be adjusted for the effects of Tranz Scenic revenue included in fourth quarter 2001;
* costs of $6 million arising from 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 June 30 are expected to be significantly below that of market expectations," Tranz Rail said.
"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."
Tranz Rail added that it didn't think these factors had led to the recent decline in its share price.
Tranz Rail is expected to post a full year net profit of $27 million according to Multex Global Estimates.
No comments yet
