UPDATED: Fletcher Building shares tumble on news of widening loss, Norris leaving

UPDATE:

As of 1.54pm, Fletcher Building shares had slipped again to $6.820, representing a drop of $0.950 or 12.23% since last week’s trading halt was lifted this morning.

EARLIER:

Shares in Fletcher Building have fallen more than 13% since this morning’s announcement that chairman Sir Ralph Norris is finally falling on his sword.

Shares in the troubled company have lost 28.07% (or $2.28) of their value over the past year as negative rumours continued to swirl of losses in the company's business and interiors unit and were confirmed.

They initially dropped $1.03 (13%) to $6.74 when trading resumed following a halt last week.

At time of posting Fletcher Building shares have since risen slightly to $6.910, representing a fall of $0.860 or 11.07%.

As part of this morning’s announcement, the company estimated its building and interiors unit, which is responsible for its major construction projects, will lose a further $486 million in operating profit in the year ending June, bringing the unit’s total losses to $660 million – on top of its loss of $292 million in earnings before interest and tax (ebit) lost in the year ended June 2017.

Sir Ralph said he will depart the company no later than the annual shareholders’ meeting, which is likely to be held in October.


RELATED VIDEO: Jenny Ruth explains the background to Fletcher's trading halt (Feb 8)

(Additional reporting BusinessDesk)

All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.

16
Login in or Register to view & post comments