Treasury Wine under review after downgrade

Shares in Treasury Wine Estates sank 20% on Thursday after they came out of a trading halt, with the company downgrading 2014 guidance by a similar amount. But whereas last year's problems were mostly due to writedowns on old stock, this downgrade relates to tough trading, with price rises and reduced discounting resulting in 'higher than expected volume declines'. The company said demand in China was particularly weak due to government austerity measures. The net result is that the company now expects first-half earnings before interest, tax and SGARA adjustments to be $42m–$46m, compared to last year's $73m. Full-year...

Shares in Treasury Wine Estates sank 20% on Thursday after they came out of a trading halt, with the company downgrading 2014 guidance by a similar amount. But whereas last year's problems were mostly due to writedowns on old stock, this downgrade relates to tough trading, with price rises and reduced discounting resulting in 'higher than expected volume declines'.

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