Noting that the company's operating profit before amortization had fallen by 2.5 million Australian dollars (€1.7m-$1.8m) in the first four months of its financial year, Billabong International's management warned shareholders at the company's annual meeting about some external challenges to its turnaround plan. It listed among other problems the decline in the value of the Australian dollar, which is putting pressure on apparel margins and making debt reimbursements more expensive, and the weakness of the North American action sports market. The statement caused the company's stock market quotation to dive by more than 20 percent.

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