And is there another pounding coming for struggling wine group Treasury Wine Estates (TWE)?
The company went into a trading halt pending an announcement concerning its interim profit.
Shares are to resume trading by market opening on Thursday at the latest.
"The company requests this halt whilst management reviews its preliminary financial results for the 6 month period ending 31 December 2013 and any implications for the company’s full year forecast," the company said.
Investors took this to mean another profit downgrade is coming.
Last year the shares were hammered after the company revealed big losses and write downs on unsold wine stocks in the US, as well as cost cuts and other impairments. The news saw the company’s then CEO leave the group.
Treasury Wine forecast pre-tax earnings this year of between $230 million and $250 million, up from $216 million in 2012-13.
But the company has previously said earnings in the first half of 2013-14 are expected to be lower than in the prior year due to lower US shipments and increased brand investment in Asia.
An excess of stock in Treasury Wine’s key US market contributed to $153.4 million in costs in the 2012-13 financial year, and the decision to dispose of excess wine stocks led to the exit of then CEO David Dearie. Treasury Wine shares last traded at $4.55 last Friday.
TWE 1Y – Treasury Wine Estates in trading halt
