Australia's Downer EDI sees $253 mln annual loss on impairment charge (updated)

DOWNER EDI

03/08/2023 24:44

(Adds details about impairment charges in paragraph 3 and CEO
comment in paragraph 4)
       Aug 3 (Reuters) - Australian contractor Downer EDI
 DOW.AX  said on Thursday it expected to record a statutory net
loss after tax of about A$386 million ($252.52 million) for
fiscal 2023 on impairments against its facilities and utilities
units.
    The company said it would recognise a non-cash, pre-tax
impairment charge of A$549.6 million in the year ended June 30,
2023.
    The impairment comes from increased debt costs and
"tightening market conditions" for its cleaning and maintenance
business Spotless, which caters to the defence sector.
    "Downer is undergoing a period of significant and necessary
organisational change. Against this backdrop, we have delivered
underlying earnings in line with what was previously
communicated," CEO Peter Tompkins said in a statement.          
 ($1 = 1.5286 Australian dollars)

 (Reporting by Navya Mittal in Bengaluru; Editing by Subhranshu
Sahu)
 ((Navya.Mittal@thomsonreuters.com;))