Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
Wednesday, October 04, 2006
GenCorp Declining Margins
GenCorp Inc. GY reported results for the Q3. Sales are up 18% for the quarter and 9% year to date. Yet serious losses continue. Q3 sales as a percentage of cost of products sold dropped from 12.1% last year to 8.8% this year. The year to date trend shows a drop from 10% last year to 8.5% this year. Management press release has failed to publicly recognize this distressing trend and present plans on how to reverse the problem.