Brickworks shares drop after $123m impairment
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More news: Shares in Brickworks are down nearly 2% to $25.56 after the construction materials supplier flagged a hefty $123.5 million in writedowns in its Austral Masonry and Brickworks North America businesses ahead of full-year results later this month.
The company attributed the impairments to a slowdown in building activity and competitive pressures, both in Australia and in North American markets. It had reported a loss for the first half of the fiscal year.
Brickworks flags $123m writedowns ahead of full-year results
The news: Construction materials supplier Brickworks has flagged hefty writedowns in its Austral Masonry and North American businesses ahead of full-year results later this month.
The numbers: The company will recognise a total non-cash impairment charge of $123.5 million on a post-tax basis, in its full-year accounts.
This includes a $54.7 million writedown in its Austral business, and a $68.8 million charge against Brickworks North America.
The context: Brickworks attributed the writedown in Austral to an accelerated deterioration in high-rise building activity during the second half. This was particularly in its key markets in Sydney and Brisbane, as well as a delay in realisation of benefits in a new plant due to scaled back operations.
It cited similar reasons for the impairment in the North American business, where significantly reduced activity has weakened the short-to-medium term outlook for non-residential buildings in key markets in the US.
Brickworks reported a $52 million statutory loss for its first half. It will report full-year results on 26 September.
The source: ASX announcement
