CLO Profit warning , page-3

ATM

So because you fail to research a company properly why are they liars.

A simple look at where CLO has some of its major contracts (Indonesia, Pakistan) and recent events should have been enough warning that current earnings may be at risk.


Sydney - Monday - November 11: (RWE) - Clough Ltd today warned
it had downgraded its profit expectations for the first half.
Managing director Dr Brian Hewitt said in a statement to the
ASX: "Due to some unexpected project and commercial difficulties and
adherence to the company's policy of not booking early-stage profits
on large and long-term contracts, the board is now anticipating Clough
Ltd may report a loss for the six months to December 31 2002.
"The company adheres to a policy of not recognising profits
during the early phases of projects.
"Where a project's forecast costs to completion are greater than
revenues, the loss is brought to account immediately, even though
revenues for that project may extend well into future periods.
"With respect to the full-year results the board anticipates a
profitable result, but with the figure down on last year.
"The company's balance sheet remains very robust.
"The board is disappointed by this foreshadowed result and
action is being taken to mitigate loss and return the company to
profitable growth."
Clough fell 16c to 52c.
ENDS