Fletcher Building cuts profit forecast after quake
Fletcher Building expects the Christchurch earthquake to knock between $14 million and $24 million off its full-year earnings after tax. PLUS: Makes $5 million quake donation.
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Fletcher Building (NZX:FBU) expects the Christchurch earthquake will lower its net earnings after tax for the year to 30 June 2011 by about $14 million to $24 million compared to previous forecasts.
Included in this estimate is an allowance of $5 million for support that the company expects to provide to assist with the recovery programme in the city of Christchurch.
Fletcher Building said that although activity levels in Christchurch are generally expected to increase as the rebuild and reconstruction work gets underway, there will be a short-term negative impact on earnings as the assessment and planning phases are put in place.
The earthquake on February 22 has caused significantly more damage than the first major earthquake on September 4 last year and the economic cost has been estimated to be two to three times higher than the earlier event, the company said.
“As a result, the Christchurch economy has been seriously disrupted and general business conditions are expected to remain at very low levels for some time.”
The company has not quantified any potential impact on its financial results in future years as a result of the earthquake.
Niko Kloeten
Fri, 04 Mar 2011
Fri, 04 Mar 2011
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Fletcher Building cuts profit forecast after quake
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