New Zealand's Fletcher Building on track for worst year in 16

Fletcher Building

27/12/2024 01:06

** Shares of Fletcher Building  FBU.NZ  on track for their
worst year since 2008 with a loss of more than 38%
    ** Construction services provider has run into a volley of
setbacks this year, including departures of several top
executives 
    ** In May, co said weaker market conditions will hurt annual
earnings, sending its shares 14.5% lower to NZ$3.00 - the
weakest level since November 2002
    ** A unit of Fletcher was dragged to court over a dispute
surrounding plumbing failures in 1,500 Australian homes 
    ** Fletcher Building raised NZ$700 mln ($393.54 mln) to
improve financial stability to prevent selling assets below
their value and focus on operational performance
    ** Morningstar expects earnings to remain under pressure
operationally, with near-term risk stemming from unit Iplex
Australia's pipes issue in Western Australia 
    ** Investment research firm notes Iplex has not agreed to
the joint industry response between Fletcher and the Western
Australia government 
    ** Stock trading at NZ$2.875, as of 0048 GMT, hovering near
its 22-year low


($1 = 1.7787 New Zealand dollars)

 (Reporting by Sneha Kumar in Bengaluru)
 ((Sneha.Kumar@thomsonreuters.com;))