Spotlight on Tranz Rail

By IRENE CHAPPLE and CHRIS DANIELS

Embattled Tranz Rail announces its full-year results on Thursday, a day before the Friday reporting deadline for companies with June 30 balance dates.

Eighteen other companies, including Hellaby Holdings and New Zealand Oil & Gas, need to report by Friday, but the spotlight is firmly on Tranz Rail.

Its shares have fallen more than 60 per cent since January, accompanied by company warnings of a pending $170 million writedown and lower earnings forecasts.

Tranz Rail's chief financial officer, Wayne Collins, said last week that the company's full-year operating profit would meet previous forecasts ($26 million net profit) and the amount of writedowns would be at the lower end of the range previously indicated ($170 million).

The Market Surveillance Panel is investigating two complaints that Tranz Rail withheld information from investors.

Recently listed plastics manufacturer Vertex is also in investors' bad books after being referred to the Securities Commission last week by the exchange.

Vertex has trimmed its prospectus expected earnings forecast by 15 per cent for the six months to September 30, and its full year earnings by 10 per cent.

The exchange said the downgrades "may cast doubt upon the accuracy of the forecast financial information."

The sharemarket will open two hours late on Wednesday in commemoration of the September 11 attacks last year.