I have attached an excerpt from today's SMH regarding one of the main issues in the demise of Nylex. This is probably a good indication on where one of the problem businesses may lie within Hill's.
Regards
P
"Nylex recorded a loss of $21.3 million last year after a profit of $10.9 million the year before. The company, a leading producer of water tanks, was badly hit by events in the water tanks market.
The drought and a government rebate had stimulated demand for tanks, but there was a sudden flood of entrants to the market by local manufacturers as barriers were not high due to easily available technology.
The oversupply pushed down prices and, when heavy rains fell in Queensland and NSW, demand for water tanks collapsed. Nylex had built its 2008 budget on expanding tank operations."
what the?, page-11
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