* . *
  • About
  • Advertise
  • Privacy & Policy
  • Contact
Monday, June 9, 2025
Earth-News
  • Home
  • Business
  • Entertainment
    Cisco Partners with Monumental Sports & Entertainment to Power New D.C. Arena – Cisco Newsroom

    Cisco Teams Up with Monumental Sports & Entertainment to Revolutionize the New D.C. Arena Experience

    Middle Eastern Entertainment Headlines at 5:49 a.m. GMT – Yahoo

    Exciting Updates from the Middle Eastern Entertainment Scene!

    Ceramic Dalmatian Entertainment is WLAF’s Business of the Week – WLAF

    Spotlight on Success: Ceramic Dalmatian Entertainment Shines as This Week’s Featured Business!

    Brass Lion Entertainment unveils co-op action RPG Wu-Tang: Rise of the Deceiver – VentureBeat

    Unleash Your Inner Warrior: Discover the Co-Op Action RPG Wu-Tang: Rise of the Deceiver!

    Entertainment lineup released for 2025 Mississippi State Fair – WAPT

    Exciting Entertainment Lineup Unveiled for the 2025 Mississippi State Fair!

    After Denzel Washington Said He Would Be In Black Panther 3, Ryan Coogler Explained Why He’s ‘Fine’ With That Information Being Revealed So Early – Yahoo

    Ryan Coogler Shares Why He’s Cool with Denzel Washington’s Black Panther 3 Reveal!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

    How Technology is Shaping Labor Rights and Political Power Across Africa

    Reeves to Announce £86 Billion for Science and Technology in Spending Review – Bloomberg

    Reeves Set to Unveil Groundbreaking £86 Billion Investment in Science and Technology!

    Innovation at Scale: How P&G Transforms Business Through Technology – Procter & Gamble

    Revolutionizing Business: P&G’s Bold Journey into Technological Innovation

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Apple Watch and the future of wearable technology in healthcare – MSN

    Revolutionizing Healthcare: The Future of Wearable Technology with Apple Watch

    ECS Professor Pankaj K. Jha Receives NSF Grant to Develop Quantum Technology – Syracuse University News

    Unlocking the Future: ECS Professor Pankaj K. Jha Secures NSF Grant for Groundbreaking Quantum Technology Development

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
  • Home
  • Business
  • Entertainment
    Cisco Partners with Monumental Sports & Entertainment to Power New D.C. Arena – Cisco Newsroom

    Cisco Teams Up with Monumental Sports & Entertainment to Revolutionize the New D.C. Arena Experience

    Middle Eastern Entertainment Headlines at 5:49 a.m. GMT – Yahoo

    Exciting Updates from the Middle Eastern Entertainment Scene!

    Ceramic Dalmatian Entertainment is WLAF’s Business of the Week – WLAF

    Spotlight on Success: Ceramic Dalmatian Entertainment Shines as This Week’s Featured Business!

    Brass Lion Entertainment unveils co-op action RPG Wu-Tang: Rise of the Deceiver – VentureBeat

    Unleash Your Inner Warrior: Discover the Co-Op Action RPG Wu-Tang: Rise of the Deceiver!

    Entertainment lineup released for 2025 Mississippi State Fair – WAPT

    Exciting Entertainment Lineup Unveiled for the 2025 Mississippi State Fair!

    After Denzel Washington Said He Would Be In Black Panther 3, Ryan Coogler Explained Why He’s ‘Fine’ With That Information Being Revealed So Early – Yahoo

    Ryan Coogler Shares Why He’s Cool with Denzel Washington’s Black Panther 3 Reveal!

  • General
  • Health
  • News

    Cracking the Code: Why China’s Economic Challenges Aren’t Shaking Markets, Unlike America’s” – Bloomberg

    Trump’s Narrow Window to Spread the Truth About Harris

    Trump’s Narrow Window to Spread the Truth About Harris

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    Israel-Gaza war live updates: Hamas leader Ismail Haniyeh assassinated in Iran, group says

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    PAP Boss to Niger Delta Youths, Stay Away from the Protest

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Court Restricts Protests In Lagos To Freedom, Peace Park

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Fans React to Jazz Jennings’ Inspiring Weight Loss Journey

    Trending Tags

    • Trump Inauguration
    • United Stated
    • White House
    • Market Stories
    • Election Results
  • Science
  • Sports
  • Technology
    Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

    How Technology is Shaping Labor Rights and Political Power Across Africa

    Reeves to Announce £86 Billion for Science and Technology in Spending Review – Bloomberg

    Reeves Set to Unveil Groundbreaking £86 Billion Investment in Science and Technology!

    Innovation at Scale: How P&G Transforms Business Through Technology – Procter & Gamble

    Revolutionizing Business: P&G’s Bold Journey into Technological Innovation

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Drag racer survives frightening airborne crash at World Wide Technology Raceway – FOX 2

    Apple Watch and the future of wearable technology in healthcare – MSN

    Revolutionizing Healthcare: The Future of Wearable Technology with Apple Watch

    ECS Professor Pankaj K. Jha Receives NSF Grant to Develop Quantum Technology – Syracuse University News

    Unlocking the Future: ECS Professor Pankaj K. Jha Secures NSF Grant for Groundbreaking Quantum Technology Development

    Trending Tags

    • Nintendo Switch
    • CES 2017
    • Playstation 4 Pro
    • Mark Zuckerberg
No Result
View All Result
Earth-News
No Result
View All Result
Home Business

What went wrong for Fletcher Building?

February 18, 2024
in Business
What went wrong for Fletcher Building?
Share on FacebookShare on Twitter

By Susan Edmunds of Stuff

Cranes in Auckland's central city.

Fletcher Building’s $120 million net loss is the latest in a run of bad news for the company.
Photo: RNZ / Cole Eastham-Farrelly

In what was probably corporate New Zealand’s least surprising resignation, Fletcher Building chief executive Ross Taylor announced he was stepping down on Wednesday.

He also delivered news that the company had made a net loss of $120 million in the first half of its current financial year, and downgraded its earnings guidance for the full year to a range of $540 million to $640m, up to 20 percent below what the market was expecting.

The loss included a $165m provision for increased costs and insurance issues for the troubled New Zealand International Convention Centre project, announced on 5 February, and a $122m writedown on the value of its Australian Tradelink business.

So what has gone wrong for Fletcher, and can it turn it around?

Taylor blamed “materially weaker” trading conditions, particularly in the New Zealand residential sector.

He has given six months’ notice – after telling the share market earlier in the week that he was considering his position. Board chair Bruce Hassall also resigned.

Fletcher’s half-year update was presented with slides showing the company’s experience of the market compared to what it had expected.

In New Zealand, the residential market was down about 20 percent compared to an earlier prediction of 12 percent. Commercial and infrastructure was down 7 percent compared to an initial outlook of 4 percent. Overall, the New Zealand materials and distributions market was down 15 percent compared to an initial outlook of 8 percent.

Michael Sherrock, equity portfolio manager at Nikko Asset Management, said he was surprised that Fletcher appeared to have been blindsided by the market conditions.

“You would think they were getting reasonable monthly accounts, divisions feeding information up to them. The fact they had a provision last week [relating to the extra costs for the convention centre] you would have thought through that process they would have had a pretty good feel for the first-half result. I don’t know why the market could not have been updated then or earlier.

“Where are things breaking down in terms of communication through to senior management? What are the systems like for them to come out with the first-half result they have?”

Fletcher announces $486 million increase in the projected losses for Fletchers' troubled Building and Interiors (B&I) division on 16 major construction projects.

Fletcher Building chief executive Ross Taylor has resigned.
Photo: RNZ / Dan Cook

Other commentators have criticised the company for drip-feeding its bad news to the market rather than providing a solid update.

Simplicity founder Sam Stubbs, who invests in Fletcher and is a customer via Simplicity Living, which is a builder, said the company should not be surprised by any market conditions.

“Their market intelligence must be better than anybody’s. It must be better than the government’s. If you were a small business bobbing around like a cork on the ocean, I would understand but Fletcher is the oil tanker. I don’t buy that.”

This is the latest in a run of bad news for Fletcher. In recent years, it has dealt with a Gib board crisis, when a shortage of plasterboard caused such headaches for the building sector that the Government was forced to step in.

It has dealt with problems with leaky pipes in western Australian homes and has had the construction of the convention centre set back years by an accidental fire in 2019.

Stubbs said the problems began over a decade ago but the company continued to find one-off events and issues to blame rather than confronting bigger concerns.

“When you talk about any specific project or macroeconomic event, yes, it can have influence. But with a rolling series of problems you have to look deeper, beyond any individual project into the culture of the organisation.”

He said his business was not happy as both a shareholder and a customer, which was unusual.

“Usually if you’re making tons of money for shareholders they’re delighted even if you annoy customers. That speaks to the culture of the organisation. The culture is one of hubris not humility.

“The Gib crisis is a good example. Here is a company that has 95 percent market share and so it should be able to have very good clarity about what it needs to do to supply the market. It should be in a position to make an awful lot of money for it. But it undersupplied the market when it it needed it and now it’s oversupplying when it doesn’t.

“It ended up building a factory at the wrong time of the cycle. It speaks to a company that is operating out of a mentality of entitlement.”

He said “two scalps would not be enough”.

“The fact the board hasn’t all offered themselves up for re-election when they lost shareholders so much money, including over a million KiwiSaver members, speaks to my mind that they still don’t get it. They don’t get they are playing dice with other people’s money.”

Shares were trading at $3.61 on Wednesday evening, down 20 percent over a year.

Sherrock said there seemed to still be a lot of uncertainty about the final result for the year, with such a wide range of guidance, and just four-and-a-half months to go.

“That highlights the uncertain environment.”

Rohan Koreman-Smit, senior equities analyst at Forsyth Barr, said there would be a challenging 12 months ahead, and the macroeconomic environment had deteriorated more than Fletcher thought.

“But migration is strong, the housing market looks to be more stable. Hopefully there are some rate cuts eventually. But then you’ve still got an open question on the pipe issue, the convention centre to finish and a management transition to undertake, and a balance sheet that has gone from being very low levels of debt to much more geared.”

John Tookley, a construction expert at AUT, said it was not healthy for New Zealand to have Fletcher struggling.

“It is indicative of wider problems associated with the building industry as a whole… it must always be remembered when you talk about these issues that all construction takes place with borrowed money… the cost of money goes up, interest rates go up, it will have inevitable consequences on the building industry as a result. All companies are subject to that and Fletcher is a bit more exposed.”

But he said the company had a lot of strategic depth and could move money from different parts of the business to support others. “It will hold them in good stead and they have the capacity for sure to be able to come back from this.”

This story was originally published on Stuff.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : RNZ – https://www.rnz.co.nz/news/business/509244/what-went-wrong-for-fletcher-building

Tags: businessFletcherWrong
Previous Post

Construction costs: Building consent reform will bring ‘clarity and consistency’

Next Post

Japan launching new visa for digital nomads but will it be enough to solve its economic woes?

Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

How Technology is Shaping Labor Rights and Political Power Across Africa

June 9, 2025
PCT Day 16-22 — Ecological Whiplash – The Trek

PCT Day 16-22 — Ecological Whiplash – The Trek

June 9, 2025
Attacks on science are attacks on making and keeping America great: op-ed – AL.com

Attacks on science are attacks on making and keeping America great: op-ed – AL.com

June 9, 2025
Science Confirms: Social Media Could Be Making Kids Depressed – SciTechDaily

Science Confirms: Social Media Could Be Making Kids Depressed – SciTechDaily

June 9, 2025
ZEL Mallorca, the active lifestyle brand of Meliá unveils bold and vibrant signature suite in Mallorca collaboration with Parisian artistic duo, Pangea. – Edomex Al Día

ZEL Mallorca, the active lifestyle brand of Meliá unveils bold and vibrant signature suite in Mallorca collaboration with Parisian artistic duo, Pangea. – Edomex Al Día

June 9, 2025
Power up your play with Nintendo Switch 2 and Mario Kart World launching today – News – Nintendo Official Site – Nintendo

Get Ready to Race: Nintendo Switch 2 and Mario Kart World Launch Today!

June 9, 2025
Lebanon aims to lure back wealthy Gulf tourists to jump-start its war-torn economy – Los Angeles Times

Lebanon Sets Sights on Wealthy Gulf Tourists to Revive Its War-Torn Economy

June 8, 2025
Cisco Partners with Monumental Sports & Entertainment to Power New D.C. Arena – Cisco Newsroom

Cisco Teams Up with Monumental Sports & Entertainment to Revolutionize the New D.C. Arena Experience

June 8, 2025
Couples who cuddle before sleep reap key health benefits, study reveals – Fox News

Couples who cuddle before sleep reap key health benefits, study reveals – Fox News

June 8, 2025
‘Damnit, get somebody in there’: Jimmy Patronis presses Ron DeSantis on CFO vacancy – Florida Politics

Damnit, Get Somebody In There!’ Jimmy Patronis Urges Ron DeSantis to Fill CFO Vacancy Immediately

June 8, 2025

Categories

Archives

June 2025
MTWTFSS
 1
2345678
9101112131415
16171819202122
23242526272829
30 
« May    
Earth-News.info

The Earth News is an independent English-language daily published Website from all around the World News

Browse by Category

  • Business (20,132)
  • Ecology (678)
  • Economy (691)
  • Entertainment (21,597)
  • General (15,281)
  • Health (9,733)
  • Lifestyle (695)
  • News (22,149)
  • People (692)
  • Politics (698)
  • Science (15,910)
  • Sports (21,193)
  • Technology (15,678)
  • World (676)

Recent News

Technology, Labor Rights, and Political Power in Kenya and Across Africa – Tech Policy Press

How Technology is Shaping Labor Rights and Political Power Across Africa

June 9, 2025
PCT Day 16-22 — Ecological Whiplash – The Trek

PCT Day 16-22 — Ecological Whiplash – The Trek

June 9, 2025
  • About
  • Advertise
  • Privacy & Policy
  • Contact

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

No Result
View All Result

© 2023 earth-news.info

Go to mobile version