Fletcher reviewing construction arm
Fletcher Building, the country’s biggest construction firm, has gone into a trading halt as it reviews the financial performance of its construction division.
The Auckland-based listed company went into a halt yesterday ahead of an announcement from the company.
It later said the halt would be in place until a review of the financial performance of its construction division was completed.
An impact on earnings guidance would also be provided.
Last month, Fletcher Building said its after-tax profit for the six months to December 31 was $176 million, up 2 per cent on last year.
The strength of New Zealand’s economy helped boost its profit, and revenue rose as its New Zealand businesses grew and the purchase of the Higgins contracting business came through.
The company expected the strong economic conditions to continue throughout the year, particularly as there was strong demand for new housing in Auckland and the surrounding regions, as well as national infrastructure and commercial projects.
At the time, the company gave guidance for its earnings before interest, tax and significant items of between $720m and $760m for the 2017 full-year.
Chief executive Mark Adamson said the company had, however, worn a loss in the order of tens of millions of dollars on a big project.
But other than to say it was a current job, he declined to give further detail.
‘‘It’s a really detailed programme management issue, which I don’t really want to go into the detail of it here; it would take two hours to explain the nature of it.
‘‘I think suffice to say, we now have our arms around it.’’
Adamson said the company had also slowed down its acquisition of land.
‘‘I think we’re approaching a point where we have enough land to build against.’’