Elders (ELD) once again showed the market what a loss-making tease it is.
Asset sales, staff cuts, renegotiated debt deals, promises of better times, and problems in its cattle division after senior staff had departed. The company has everything, including a bit of drought and problems with the live cattle trade.
It has been a busy year for the company that was capped off yesterday with the unfortunate news that the group will lose more than half a billion dollars in the year September 30, 2013.
The company is due to release its full year results next Monday, November 18 but warned yesterday it expects to post a net loss in the order of $510 million for the year.
"It is now clear that there will be a number of impairments, particularly to intangibles and the de-recognition of tax assets and other non-recurring items," Elders said in a short, two-paragraph statement to the ASX yesterday.
And seeing Elders announced an interim loss of $303 million for the six months to March, a statutory loss of around $510 million would indicate another $200 million in one off losses and write downs which will be detailed next Monday.
The company reported one off items of $280 million for the first half.
The company’s shares fell 1.5c to 12c yesterday, a fall of 11%.
ELD 2Y – Elders to report massive $510 million loss next Monday
The company said it had yet to quantify the extent of the loss that will be incurred from irregularities it uncovered in its international trading businesses, but expects that to be finalised before its financial results are announced on Monday.
Last month the company said it expected a discrepancy in the valuation of cattle in its live export division to cost it about $18 million.
Elders had previously announced plans to axe about 150 jobs, or 10% of its workforce, as it reorganises its rural services operations and reduces debt.
The company is aiming to cut its operating costs by more than $25 million from April 2014, and has sold its Futuris automotive interiors business to reduce its debt levels.
