Amazed corporations can get away with this

[Rodstar]

http://www.abc.net.au/news/2013-08-...-to-cut-40-jobs-despite-record-profit/4908068

Codan owns minelab 100%
they make a record profit then sack the workers that got them that profit. probably a bit bitter about it cause i know what it is like to be made redundant by a large organisation.... hope the workers find employment quickly.

wonder how good that Garrett ATX is hmmmm

 

[AuSearch]

Maybe don't rush to be too hard on them. Recently despite these profits their share prize was smashed to the tune of -35%+. They were also hacked by the Chinese. Remember also it is our money involved in the super funds which helps create the pressure on companies to increasingly make larger and larger profits. If our funds don't perform we change to other funds that do. We should be more annoyed at the banking system and games the bankers play than a small player like Coden. Just my 2cents on the issue. Ps. It's a bit sad the ABC fails to even mention the large scale price down grade IMO. :|

 

[Rodstar]

Yeah i heard they got hacked by the chinese! that is of concern for all Australian companies.
I just checked their stock chart and their share value sky rocketed this year to nearly $4 ! but as you say it fell again BUT its worth 25% more than the same time last year! so i see its drop in the share price as a correction... lol !! and with a record profit it should still gain some ground again. it just sucks about the workers, have been watching that many get laid off over the years, lets hope this new aussie government can deliver....

 

[Nugget]

It's not uncommon for Companies to act on future projections rather than strictly focusing on previous profits and losses. Maybe they're anticipating a decline in sales / profits during the upcoming 12-24 months OR maybe they're simply freeing up some capital to use elsewhere? It could be a good thing for ML, but either way it's always sad when people loose their jobs.

 

[Outback]

What was the reason they sold their detectors cheaper in the USA then in Australia even when our dollar was higher ? I have factored in the GST .

OB .

 

[BrisJoe]

Maybe they have predicted a sharp drop in future sales due to Garrett releasing at ATX
Maybe they know something about it that we don't and are expecting it to hurt sales

 

[Marked]

What was the reason they sold their detectors cheaper in the USA then in Australia even when our dollar was higher ? I have factored in the GST .

OB .

Bigger market, therefore cheaper transport and logistics costs...and there's that "Aussies will pay more" levy that we always get hit with.

 

[Nugget]

This pretty much explains it.

The locally-based company reported a $45 million net profit, almost double the amount recorded in the previous financial year, but a spokesman says there were adverse conditions for the business in the second half.

They included a fall in demand for its metal detectors in African markets because of bad weather and civil unrest.

Source: http://www.abc.net.au/news/2013-08-...-to-cut-40-jobs-despite-record-profit/4908068

 

[GeoKJP]

You've also got to wonder how many detectorists are left after the "boom" of late? These surges can often equate to a fall in profit and therefore demand and subsequently loss of jobs. The trials and tribulations of big business I guess.

 

[robertbruce]

Maybe they have predicted a sharp drop in future sales due to Garrett releasing at ATX
Maybe they know something about it that we don't and are expecting it to hurt sales

add chinese knock-offs from the hack then ebay hurts them....