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It's never a good sign when the first "highlight" in your earnings press release is:

"During this period we have observed very good soil humidity conditions in most of the areas where the coarse crop planting process (including soybean, corn and sunflower) is set to begin. In addition, we have started planting activities in most of the areas allocated to wheat production."

That's great. How about earnings?

Well, those were kind of a dud. Two issues here, one of which is apparently not a real loss (just a currency conversion issue, although it effects liabilities denominated in dollars) but the other is revaluation of IRSA real estate holdings, with a resulting major loss (over $15 million USD). That's more troublesome. And of course their debt continues to pile up. So much promise here, and so much risk.

"Operating income totaled ARS 191.7 million, a 4.4% increase as compared to the same quarter of the previous year.

Net Income for the period amounted to ARS 1.0 million [$234K USD] compared to ARS 51.9 million [$12.2m USD] in the first quarter of 2011. This was caused mainly by higher financial charges, which totaled ARS 167.3 million compared to ARS 74.3 million in the same quarter of the previous fiscal year.

The reason for this decrease was a loss from changes in exchange rates resulting from the depreciation of the exchange rate that affects our liabilities denominated in dollars, for ARS 49.0 million (vs. ARS 2.4 million in the first quarter of fiscal year 2011) and a loss from other financial assets for ARS 62.4 million (vs. ARS 18.2 million) mostly due to the revaluation at market values of certain assets held of by our subsidiary IRSA."
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