Huge losses Australian companies amid economic turmoil

29/08/2008 23:17:42

The US sub prime crisis and global credit crunch have caused two Australian companies to post massive losses.

Centro Properties Group which owns shopping centres across Australia, New Zealand and the United States has recorded a loss of just over $AUS2 billion after a fall in property values and asset writedowns.

The chief executive, Glenn Rufrano, says the company is still trying to find a white knight investor to help rescue the group but he says there will no forced asset sales

"We will proceed with assets which meet our criteria including an acceptable price."

Meanwhile investment company, Allco Finance Group, also had to write down assets and goodwill and has posted a loss of just over $AUS1.7 billion for last financial year.

The company has not provided any earnings outlook for 2009 saying it is inappropriate to give any guidance.

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