Forum Archive Index - May 2003

[Marilyn Munroe <who.c@res.co.nz>]

 Other posters and myself have previously said some uncomplimentary things 
about Sanfords policy of taking out forward foreign exchange cover.

Oh dear! Egg on face time. A selected quote.

"CONSOLIDATED OPERATING STATEMENT FOR THE HALF YEAR (7 MONTHS) ENDED
31/03/20003
..............
Overall tax paid profit increased from $11.8m for the six months last year
to $23.8m for the seven months this year.  Foreign exchange gains of $14.0m
for the period offset the lower returns from export sales due to the higher
New Zealand dollar. For the same period last year foreign exchange losses
of $11.5m were reported."

Read more at;

        http://www.sharechat.co.nz/markets/news.php/NZSE/SAN/item/89397/A

This is an emphatic rebuttal of our concerns.

Despite the current result I have a lingering doubt that the long term outcome 
of the forward exchange policy is a fiscal drag on the company. I am too lazy 
to do the maths however. A project for a commerce student perhaps?

Boop-boop-de-do Marilyn

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