Ann: Preliminary Final Report-WOR.AX, page-70

A point that is often missed by many good analyst.

Consider that if you take $200 mn out of your cost base at a gross margin of lets say 6%, this equates to the equivalent of $1.2 billion in sales revenue.

What I generally find is this scenario, an announcement that X has won a contract worth $1.2 billion revenue SP goes up to the equivalent of the expected profit x EPS ratio. Company X announces $200 mn in cost reduction SP not as excited.

To those that think this company is broken, it has effectively maintain it Gross Revenue by cutting out costs. When times are good companies are slack with regards to fiscal management, so tough times return responsible fiscal management. This fiscal responsibility generally continues even after the tough times abate and the above the line revenues commence growing.

This growth will come, the question is when, by they time the market notices it investors would have missed a large portion of the gains. I speak from my pocket as I have a large hole to climb out of. I would find it incredulous if growth did not return to the engineering sector, WOR has made itself a more nibble player rather than a monolith that takes years to react to change.

Am I right, not sure but I hope that my calculated argument has a greater than 50% chance of being correct sooner rather than later.

If Oil is gone as a commodity the world will be a very different place. I can see that happening within the next 20-30 years.