AUS: New downgrade behind Treasury Wine Estates halt, say sources

(WAToday) - Investors in Treasury Wine Estates are bracing for yet another profit downgrade from the ailing wine group with soft sales and profit figures for December believed to be behind a trading halt requested by the company earlier on Tuesday.

Treasury is the company behind well-known brands including Penfolds, Wynns, Rosemount and Lindemans.

Treasury executives and the board are reviewing the latest set of figures for the company, which are thought to reflect continued tough times in both the United States market and in Asia, where austerity measures imposed by the Chinese Government have hit sales of higher-priced wines.

The latest set of profit figures have just come through to Treasury’s top executives and the company is thought to be preparing for a fresh downgrade.

Crucial month

The month of December is crucial for wine companies because of the large percentage of sales that happen in that month because of Christmas parties, gift-giving and seasonal celebrations.

Treasury was originally scheduled to announce its half-year profit figures on February 20.

A fresh downgrade from Treasury will continue to batter confidence in the company.

The company would not comment beyond an announcement to the ASX on Tuesday morning that it had requested a trading halt while management reviews its preliminary financial results for the six months ended December 31, 2013.