Fletcher Building shares tumble after half-year loss results
Make us a preferred source
Make us a preferred source on Google
More news: Shares in building supplies company Fletcher Building fell 7% to $3.44 at 12:15pm AEDT, after reporting a half-year loss of NZ$120 million ($112.7 million).
The market also responded to the announcement that Fletcher's CEO Ross Taylor and chair Bruce Hassall will leave the company later this year.
Fletcher Building posts $113m half-year loss, CEO and chairman to resign
The news: Fletcher Building has announced chief executive Ross Taylor and chairman Bruce Hassall will both leave their roles later this year as the building supplies company reported a hefty loss for the first half.
Taylor, who has led the group since 2017, will retire after serving a six-month notice period. Hassall will step down as chairman at the company's next annual meeting in October.
The numbers: Fletcher reported a half-year loss of NZD120 million ($112.7 million) compared to a NZD92 million profit in the prior corresponding period. The company said the result was heavily impacted by a NZD165 million legacy provision on the New Zealand International Convention Centre, as well as a NZD122 million non-cash impairment and write-down on the Tradelink Australia business.
Meanwhile, group revenue was NZD4.25 billion, roughly in line with a year prior. EBIT before significant items was NZD264 million, down 27% from NZD360 million.
The context: Last week Fletcher warned shareholders that it expected its half-year results to be hit by further provisions against troubled construction projects for SkyCity in Auckland and at Wellington Airport.
Taylor also attributed the company's downturn to materially weaker trading conditions, particularly in New Zealand's residential sector where volumes declined 20%.
What they said: Taylor said: "I remain committed to the business and facilitating a smooth and orderly transition to my successor who will be able to focus on leading the organisation through the next strategy cycle and beyond."
Hassall said: "The Board, Ross and I believe it is in the best interests of the business and the team that he handover to a new leader and that I hand over to a new chair at the time of the ASM in October."
The source: ASX announcement
