Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Rakon shares drop as 2014 loss widens on writedowns

Rakon shares drop 4.6% as 2014 loss widens to $79.9 million on asset writedowns, depreciation

By Tina Morrison

May 8 (BusinessDesk) – Shares in Rakon dropped 4.6 percent, making the stock the second-worst performer on the NZX All Ordinaries Index, after the maker of crystal oscillators used in smart phones and navigation systems said it lost more than it expected last year as its assets fell in value.

The Auckland-based company said it had a loss of $79.9 million in the year ended March 31, wider than its forecast loss of between $55 million to $59 million, and its $32.8 million loss the year earlier. The latest figures are unaudited and the company said its full earnings will be released May 22.

Rakon expects to write down the goodwill of its UK factory by $15 million as part of a plan to shift manufacturing to New Zealand in the current financial year. In addition, other property, plant and equipment was assessed as having a reduced useful life, bringing forward depreciation of $7.4 million and the company has also finalised the impairment following the sale of most of its stake in its Chinese factory to repay debt.

Shares in Rakon dropped 1 cent to 21 cents, taking their slide over the past year to 8.7 percent.

The company said its expectation for a 2014 loss in ‘underlying’ earnings before interest, tax, depreciation and amortisation remains unchanged of $5 million to $8 million.

Meantime, it met its target of reducing bank borrowings below $12 million at March 31, Rakon said.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news