Go the ASX! The response from the company, denying knowing anything was wrong with their earlier forecast until the 28th April, seems like a blatant eyeballing, considering the following statement in the original update:
"Penrice has been affected by unexpectedly lower demand in its Chemical business in the March quarter, particularly in the soda ash segment, where its principal glass customers reduced production rates, conducted extended maintenance shutdowns and de-stocked."
Clearly they WERE aware that this was the case before the 28th April as they go on to say: "Penrice acted quickly to sell excess soda ash volumes into export markets so as to maintain optimal capacity utilisation levels and preserve cash flow, but these export spot sales negatively impacted margin."
So they were aware enough to take action, but totally unaware that dumping the product more cheaply into export markets might affect their profit forecasts?
They also seem to be aware enough of where sales have been sitting since end of March quarter as to feel comfortable making the following statement: "Demand is now stabilised and recovering and based on customer forecasts and an improving Australian economy, we still expect ash sales volume to firm and increase over the next 12 months
Will the ASX take on the challenge? Unlikely, I guess... but, having started the process by asking the "when?" question, it would be good to see them turn up the heat on this answer of convenience - one which (in my view) seems to be contradictory to other statements by the company.
PSH Price at posting:
53.0¢ Sentiment: None Disclosure: Not Held
