Iluka boss defends dire outlook

15 Jul 2012, 11:06 am   -   Source: AAP

Iluka managing director David Robb has defended his decision to tell the market of his dire short-term outlook for the global economy.

Iluka Resources managing director David Robb has defended his decision to surprise the market with a sales downgrade and dire short-term outlook for the global economy.

The downgrade was a sharply more pessimistic view than that presented at Iluka's annual general meeting less than seven weeks ago, when the company said it still expected a material increase in earnings and free cash flow in 2012.

Mr Robb said on Monday that demand for Iluka's products had plummeted, with activity involving titanium dioxide - used in paints, plastics and paper - coming to a standstill.

He defended his statement on Sunday, saying that because of continuous disclosure laws he had to inform the market of anything that might change the company's outlook.

"In an ideal world you would present views of the future with a degree of certainty and in fact a degree of comprehensiveness," he told the ABC's Insiders program.

"But the nature of continuous disclosure obligations is such that if you get a single piece of the puzzle that's changed, then in our view, you're obliged to advise the market and that's what we've done."

Iluka shares closed 18 cents, or two per cent lower, to $8.80 on Friday.

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