UPDATE - Dimon to Post Wider loss than planned, stock sinks

Source from:  Reuters NEW YORK 05/26/2004

Dimon Inc. (NYSE:DMN - News), the world's No. 2 leaf tobacco dealer, on Monday said its loss would be wider than expected for its shortened fiscal year. Shares of Dimon fell more than 12 percent. Dimon already was expected to record a material charge in the third quarter due to adjustments to its production capacity. The company said on Monday that those adjustments, originally directed at U.S. operations, will now encompass operations in other regions. It also said it now expects to recognize substantial lower-of-cost-or-market charges against inventories during the quarter, particularly connected to its Italian operations. In February, Dimon forecast a loss of 8 cents to 12 cents per share for its shortened nine-month fiscal year ending March 31, excluding items. Dimon said it now expects to report a loss of 29 cents to 31 cents per share, excluding items. "In addition to the previously discussed negative effects from the major geographic shift in leaf tobacco sourcing, and from the weakness of the U.S. dollar, we have continued to experience inventory valuation issues in the third quarter," Chairman and Chief Executive Officer Brian Harker said in a statement. Harker said that costs related to insurance and professional fees also exceeded Dimon's previous estimates. Shares of Dimon plunged 85 cents, or 12.4 percent, to $6.01 in afternoon trading on the New York Stock Exchange. The shares hit a new year low of $5.86 earlier in the day. Dimon said it now plans to report results for its third quarter and shortened fiscal year on June 10. Enditem