Shares in the US wine group, Robert Mondavi Corp., fell to a four-year low after it reported lower second quarter earnings and lowered its profit forecast for the 2003 fiscal year.
Mondavi posted net income for the second quarter to the end of December 2002 of $9.8m, or 60 cents a share, down 4% from $10.2m, or 63 cents a share, in the corresponding period the year before. The company attributed the fall to weak sales, higher expenses and special charges. Revenues in the second quarter were up 8% at $141.1m.
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Excluding one-time charges, earnings rose from $11.6m (71 cents a share) to $12.7m (77 cents a share). Analysts had been forecasting between 70 cents and 75 cents a share.
Mondavi has reduced its earnings forecast for the full 2003 fiscal year from between $2.55 and $2.60 to between $2.30 and $2.35.
Following publication of the results, shares in Robert Mondavi fell by $1.68, or 5.61%, to $28.25. At one stage during the day, the shares fell to $27.70, their lowest level since October 1998. Since the beginning of the current fiscal year in July, shares in the company have fallen by around 17%.
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