MCGUIGAN SIMEON WINES EXPECTS LOSS FOR FULL YEAR.(Financial report)

SYDNEY, June 1 Asia Pulse - McGuigan Simeon Wines Ltd (ASX:MGW) says its its 2007 wine crush is down 33 per cent on last year to 158,000 tonnes and that the company would report a loss for the full year.

The company said the decline was in line with Australian Wine and Brandy Corporation industry estimates.

"While we have made solid progress particularly in the UK and Asia, it has been another tough year for the industry and for McGuigan Simeon Wines," chief executive officer Dane Hudson said.

The Australian Wine and Brandy Corporation has predicted the 2007 national wine crush will be 1.3 million tonnes, 32 per cent down on the 2006 year due to a combination of drought, frost and bushfires.

"I suspect the shortfall will be higher when final vintage numbers are released," Mr Hudson said.

"A 30 per cent lower crush cuts all the way through our business and means we are now looking at a $A4 ($US3.31) to $A6 million ($US4.96 million) loss for the 2006/2007 year."

Mr Hudson said the earnings downgrade was disappointing, given the progress the company's operational and structural progress.