Gale Pacific (GAP): Loser

Submitted by Marco on 12 November, 2006 - 09:44

Gale Pacific (GAP) Stock Price Chart

Gale Pacific (GAP) was the worst performing company on the Australian sharemarket this week (Loser of the week for week 45 of 2006). The advanced polymer producing company closed the week 19 percent lower. Annual profit expectations had been cut after poor sales in Europe. Gale Pacific now expects a net profit of about $2 million in 2006/07, more than $5 million less than its previous forecast, and a net profit in 2007/08, of around $7 million. The situation had caused higher-than-budgeted inventory buy-back levels, and was expected to result in significantly lower production volumes in China over the coming European season. "The lower European sales, along with the write-off, rework, storage, and handling costs associated with these returns and high European inventory levels, will have a significant negative impact on after tax profit for the 2006/07 year," Chief executive Peter McDonald Peter McDonald said. According to the company their restructuring is making good progress. "Directors remain confident of the work being done by management to restructure the business and of the company's medium and longer term prospects," he said. Gale Pacific's (GAP) AGM is on November 21.

Gale Pacific Limited is listed on the Australian Stock Exchange (ASX) under stock code GAP. You can view their investor website here. GAP was listed on the ASX on 14 December, 2000. It is in the Consumer Durables & Apparel industry grouping. Gale Pacific designs and manufactures advanced polymer products. The company also converts its fabrics into value-added products such as gazebos, unbrellas, window furnishings and shade sails. Principal brands under the Gale corporate banner include Coolaroo consumer products, Synthesis and Donaghy’s commercial and industrial fabrics, and Flora-Tec garden products. Browse for Australian stockbroker recommendations. Check your charts and good luck with your share trading!