News | Business
21 Aug 2017 5:28
NZCity News
NZCity CalculatorReturn to NZCity

  • Start Page
  • Personalise
  • News
  • Sport
  • Weather
  • Olympic Games
  • Ski Report
  • Shopping
  • Jobs
  • Horoscopes
  • Lotto Results
  • Photo Gallery
  • Site Gallery
  • TVNow
  • Dating
  • SearchNZ
  • NZSearch
  • Crime.co.nz
  • RugbyLeague
  • Make Home
  • About NZCity
  • Contact NZCity
  • Your Privacy
  • Advertising
  • Login
  • Join for Free

  •   Home > News > Business

    Answers sought on Fletcher $110m downgrade

    Shareholders Association says Fletcher Building's $110m downgrade leaves investors with a lack of detailed answers and raises questions about chief executive.

    20 March 2017

    The New Zealand Shareholders Association says Fletcher Building's announcement of a $110 million downgrade to full-year earnings guidance leaves investors with a lack of detailed answers and raises questions about chief executive Mark Adamson's performance.

    On a conference call on Monday, Mr Adamson said he "took full responsibility for the current situation" which led to the downgrade just four weeks after the company affirmed its full-year forecast at the release of its interim results.

    Monday's announcement, which wiped more than $650 million off its market value, mainly related to two major contracts in Fletcher Construction's buildings and interiors unit, which the company has declined to identify.

    NZSA CEO Michael Midgley said the announcement failed to explain how such a massive change has come about.

    The "lack of information in the announcement including whether the contracts concerned are ongoing or completed gives them no comfort about the future," he said in a statement.

    "The absence of any specific details on the reversal of fortunes and the tone of the announcement to the market also suggests that the problems may be systemic.

    "In any event, the second downgrade in short order raises clear questions around the ability of the chief executive to remain in the role," Mr Midgley said.

    "The NZSA will ask the company for an early meeting for a clearer explanation of the issues and will be seeking to ensure that accountability rests where it should."

    Fletcher has cut its full-year operating earnings forecast by $110 million to a range of $610m to $650m, saying the revised guidance "is due to the identification of additional estimated losses and downside risk in the buildings and interiors (B&I) business unit of the construction division".

    Fletcher Construction's major projects include the $300 million Justice and Emergency Services precinct in Christchurch, which was due to be handed over at the end of this month, but is now not expected to open until the third quarter of 2017.

    Other projects include Auckland's convention centre and Hobson Street hotel, a $700 million contract, the $425 million Commercial Bay development in Auckland for Precinct Properties, and roading work including the Waterview Connection, and Puhoi to Warkworth.

    Fletcher shares were recently down about 10 per cent at $8.28.

    © 2017 NZN, NZCity


     Other Business News
     20 Aug: NZ should renegotiate TPP now: Robertson
     19 Aug: Board asks for more money in dieback fight
     18 Aug: Yemen: UN calls for Saudi-led coalition to ease blockade of main airport to allow aid in
     18 Aug: Barcelona: Counter-terrorism strategies can't save us from the horror of vehicle attacks
     18 Aug: CBL shares fall 12pc as profit dented
     18 Aug: Steel & Tube annual profit drops 22pc
     18 Aug: Spark profit up as it embraces wireless
     Top Stories

    RUGBY RUGBY
    Colin Meads, New Zealand rugby union legend, dies aged 81 More...


    BUSINESS BUSINESS
    NZ should renegotiate TPP now: Robertson More...



     Today's News

    International:
    North Korea receiving constant oil supply as China refuses to go all in on isolating rogue state 4:37

    Living & Travel:
    Golden retriever unearths $100,000 worth of heroin while digging in backyard 4:37

    Tennis:
    Nick Kyrgios beats David Ferrer to reach Cincinnati Masters final, fresh after Rafael Nadal scalp 4:37

    Law and Order:
    Barcelona terrorist attack: What we know 4:37

    Auckland:
    Slip undermines Auckland home 21:57

    Motoring:
    Man dies in hospital days after crash 21:17

    Accident and Emergency:
    Fatal crash on Napier to Taupo road 20:37

    Law and Order:
    Tongariro search to continue 20:37

    Rugby League:
    Rooster JWH escapes NRL ban for elbow 18:57

    Rugby League:
    Hoffman no certainty for Melbourne goodbye 18:37


     News Search






    Power Search


    © 2017 New Zealand City Ltd