The embattled Australian wine giant Southcorp is expected to issue further bad news in the next few days after it asked for a suspension in trading of its shares. The request came amid rumours it will be releasing another profit warning.
“The company is reviewing its financial expectations for the second half of this financial year, particularly in the light of the continued impact of difficult trading conditions,” Southcorp told the Australian Stock Exchange.
An announcement will be made by the start of trade next Monday, until when the company’s shares have been placed on a trading halt.
Earlier this year the company sacked its CEO Keith Lambert after a disastrous 97% fall in first half profits, which led to a 20% fall in its share price in one session.
Though a new chief executive, John Ballard, has recently taken the reins, analysts believe the problems that have bedevilled the company in the last year will be difficult to rectify quickly.
Shaw Stockbroking analyst Scott Marshall said: “I don’t think things are going to get worse, but it is going to take time to deliver the required changes.”
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According to Multex Estimates, analysts are forecasting a full-year profit before one-offs of A$137.3m.
