Treasury Wine Slumps to 7-Month Low on Forecast: Sydney MoverDavid Fickling
Treasury Wine Estates Ltd., the world’s second-largest listed wine maker, fell to its lowest in seven months in Sydney trading after forecasting full-year earnings may be as much as 7.6 percent below analyst estimates.
The stock slid 2.3 percent to close at A$4.70, the lowest since Jan. 29. The drop pared Treasury’s gains this year to 0.2 percent, while the S&P/ASX 200 Index has climbed 9.2 percent.
Earnings before, interest, tax, and adjustments for the value of vineyards will range between A$230 million ($207 million) and A$250 million in the 12 months started July, the Melbourne-based company said today. That compares with the A$249 million average of 10 analysts’ estimates compiled by Bloomberg. Net income in the year ended June fell 53 percent to A$42 million, beating the A$26 million average of four analysts’ estimates.
Treasury, whose brands include Penfolds and Beringer, said July 15 that it would write A$160 million off the value of its U.S. unit to discount and destroy old and out-of-date bottles. Earnings in 2014 will be up to A$30 million lower as a result of the actions to deal with an oversupply of cheap wines in the U.S., Treasury said today.