Ann: Full year profit guidance update, page-2

This is very disappointing. While I don't think it means the company is terrible, it is a pity they didn't do a better job estimating the impact of the increased spending. This is quite a downgrade in percentage terms and the P/E is going to look awful after they report. It is a grey mark against them.

The LT history of the company comforts one as they have had a consistent approach to doing business and shown good respect for shareholders along the way. I'm always skeptical of new layers of management because they get paid well and it comes straight out of the profits. Having said that, one cannot expect a company to grow without reinvesting in itself.

It comes down to they have made some poor estimates in the past, inadvertently (presumably) misleading shareholders.