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That can be cause for concern because it can signal that the company has overestimated demand.
The new company underestimated the difficulties of refashioning the factory and perhaps overestimated demand for its energy-efficient windows.
Barratt had overestimated demand for the units in California, and rising unemployment and contributed to sales figures falling.
Wedbush analyst Michael Pachter, who came out with an "outperform" rating on Facebook before the IPO, said he thought underwriters had overestimated demand for the company's stock.
The Benetton Group, Italy's largest clothing chain, said yesterday that fourth-quarter profit fell 2.3percentt because it had overestimated demand for Rollerblade in-line skates and sold them at a discount to clear inventories.
If a company has overestimated demand, then "given the credit market as shaky as it is, it's difficult to get new debt to fund operations and it's as difficult, if not more difficult, to refinance the existing debt," said Dominic DiNapoli, managing partner of business recovery services at PricewaterhouseCoopers in New York.
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The oil and gas industry is accustomed to boom and bust cycles and also has a history of overestimating demand.
But if the IEA and the oil companies are overestimating demand it would not be for the first time.
About 85% of what EMI does release never makes a profit, in part because of the cash spent signing bands and partly due to overestimating demand.
The storyline overestimates demand reduction levels, uptake of marine renewables and irreplaceability of carbon capture and storage.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com