Media Release - Clough Announces Profit Warning "I am sure that you have all seen our ASX release yesterday and many of you will have seen today's newspaper articles which paint Clough in a far more critical situation than is, in fact, the case. It is most certainly true that we have incurred losses on several projects - this has been the subject of our Stop 'n Think program and has been discussed openly at my presentations to staff across the group in recent months. We also have our challenges on work that we are currently executing - this is our business and, if anything, we now have an organisation that is more ready to respond to these challenges than ever before, with a heightened level of awareness within the group that can only assist. But it is also true that we have a record level of work in hand, a strong cash position and a new organisation structure which addresses the key problem areas. We have made many changes to the way we work already, and we are currently finalising detailed reviews of these projects to better understand the problems and ensure they are not repeated. There are certainly hurdles ahead of us and we must all work towards resolution of these issues but we have faced difficult projects before and doubtless will again in the future. Finally, whilst publicly we are required to acknowledge that we have potential losses at the time they are foreseen, we do not have to accept internally that this will be the case - it is up to us all to maintain the fight to ensure that we make the best for the Group out of every situation. We must learn the lessons from mistakes in the past, reinforce changes we have made already, and make some hard decisions in the future. I look forward to your continued support and contribution as we work through the times ahead. We can expect further poor publicity and difficulties around our AGM Wednesday morning - we will then have an opportunity to sit together at our Annual Dinner Wednesday evening, so that we can balance this current very public focus on our problems with a recognition of some of our successes also." Rob Jewkes CEO & Managing Director 12/11/02
Cheers, Carl.
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