SYDNEY, July 15 Australia's Treasury Wine
Estates said on Monday it is destroying some of its aged U.S.
inventory, resulting in a A$160 million ($145 million) hit to
pre-tax earnings in fiscal 2013 and lower US shipments in fiscal
Shares in the company were down some 8 percent after the
Treasury Wine said it would work with its major U.S.
distribution partners to address their excess, aged and
"TWE's leadership team in the Americas believes old and
obsolete product is limiting the country's growth ambitions,"
Chief Executive David Dearie in a statement.
"As such, decisive action must be taken to address these
barriers to growth, and I am confident that the steps we are
taking support our long term growth agenda."
The company said fiscal earnings before interest, tax and
self-generating and regenerating assets (SGARA) is expected to
be in line with analysts' consensus of A$216 million, before
material items including the provision for the inventory cut.