shorters go ballistic

Geeez.... IPL ann a delay in complete of a A.Nitrate plant and UGL is hammered 4% in first 60mins. To my thinking the mkt has little sense of perspective. UGL has work booked of 8.5B and revs for FY09 of 3.9B. This delay will reduce rev in this year by about 200m. SP falls out of bed. read the UGL release. Profits still on track to grow despite this new (unexpected) delay by IPL. To me.... the firm in trouble is IPL. Obviously they know they can't sell all their product.

From UGL this morning:
"Diversified services company United Group Limited (ASX:UGL) notes the
announcement today from Incitec Pivot Limited in relation to the Moranbah
ammonium nitrate complex in Queensland.
Incitec Pivot has announced that it will slow the construction of the project by 12
months in response to expectations of slower growth in demand for ammonium
nitrate from the Queensland coal sector.
It is now anticipated that mechanical completion of the plant will occur in the first
quarter of the 2011 calendar year. This will cause UGL Resources and its partners to
recognise revenue from the $683 million alliance over a longer period. UGL
Resources has a 55 per cent ($376 million) share of the alliance.
UGL Managing Director & CEO Richard Leupen said the company was still
assessing the financial impact of the slower rate of revenue recognition. “UGL’s
initial estimates suggest the delay will cause our earnings growth for financial year
2009 to be at the low end of the 10 to 20 per cent forecast range,” Mr Leupen said."

Provides exc oppor to buy IMO.