The Californian winemaker, Roberg Mondavi Corp., posted net income of US$0.978m for the fourth quarter of 2003, which included a net pre-tax charge of US$6.9m, against US$10.16m for the comparable quarter in the previous year.

Net income for the full year fell from US$25.52m, which included US$3.8m of writedowns, to US$17.33m, which included a US$14.9m net pre-tax charge.

The company said: "We have eliminated about US$6m in annual operating costs, giving us more flexibility to invest in the marketplace. We also expect to reduce our product costs by 10%, which will significantly help margins as these cost savings flow through inventory to our income statement over the next several years."

Revenues for the quarter fell from US$125.05m to US$120.81m. However, for the full year, revenues rose from US$441.36m to US$452.67m.