nylex info Is NYLEX (NLX) the dog of dogs or what?On Wednesday,...

nylex info Is NYLEX (NLX) the dog of dogs or what?

On Wednesday, in an after-hours announcement, it warned
underlying earnings for the year would be $1.5 million to $2 million.

The company said it would not provide guidance for next year.

We should think so.

Nylex does not have a good record in the guidance area.

At the November AGM it dropped the bombshell news that
first-half profit could be down by 70 per cent, but reassured
shareholders by saying, "However, as bleak as this sounds, second-half
earnings should see a much improved situation."

It expected the full year to, er, "improve" to be down only 30
to 40 per cent, which would have been a profit of $12 to $14 million.

In fact, now the profit will be down more than 90 per cent.

The company said the main reasons for the "shortfall" were:

* continued rises in costs, particularly oil;

* much-lower-than-expected production volumes by automotive
companies;

* machine reliability at Nylex's materials handling business;
and

* lower-than-planned sales of consumer products, water tanks and
water conservation products.

Rising costs, falling sales, manufacturing problems ... there's
not a lot more that can go wrong for a company, is there?

Nylex shares fell 2.9c to a new low of 6.6c before closing at
6.9c.