What the item represents
An extraordinary loss is an item recorded below ordinary profit on the income statement, referring to a loss that arose from factors specific to that period rather than from the company's ordinary, recurring business activities.
Points to watch when reading it
An extraordinary loss can cause net income to fall well short of ordinary profit. Checking the nature of the loss — whether it stems from a temporary factor or from a more structural issue in the business — can serve as a reference point for gauging its possible effect on results in subsequent periods.