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

 


Fletcher faces $11 mln charge on sale of Hudson unit

Fletcher faces $11 mln charge on sale of Hudson distribution unit

By Suze Metherell

June 16 (BusinessDesk) - Fletcher Building, New Zealand's largest listed company, faces an $11 million charge on the sale of its construction materials distribution business Hudson Building Supplies for $20 million to HTH Stores.

A conditional agreement to sell the Australian trade-focused timber and building supplies distributor has been reached with HTH, which is part of the Woolworths home improvement division, the Auckland-based company said in a statement. Fletcher expects to record an $11 million expense in the financial year ending June 30, "reflecting the difference between sale proceeds and asset carrying values together with transaction costs," it said.

Fletcher acquired Hudson when it took over the Crane Group in 2011, but has since determined the business is "not core to its future operations". Earlier this year the company described Australian conditions, which account for half its earnings, as "soft" amid sluggish economic growth across the Tasman impacts on building intentions and a high New Zealand dollar crimps export returns.

The sale needs Australian Competition and Consumer Commission clearance, which may take up to six months to complete.

Fletcher's NZX-listed shares fell 0.9 percent to a four-month low of $8.89.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Petrol Burns Prices: Second Consecutive Quarterly Fall For CPI

The consumers price index (CPI) fell 0.3 percent in the March 2015 quarter, following a 0.2 percent fall in the December 2014 quarter, Statistics New Zealand said today. The last time the CPI showed two consecutive quarterly falls was in the December 1998 and March 1999 quarters. More>>

ALSO:

Scoop Business: NZ Broadcasters Launch Battle Against Global Mode ISPs

New Zealand broadcasters have confirmed they’ve launched legal proceedings against internet service providers who give customers’ access to “global mode”, which allows customers access to offshore online content, claiming it breaches the local content providers’ copyright. More>>

ALSO:

Sanford: Closure Of Christchurch Mussel Processing Plant Confirmed

The decision comes after a period of consultation with the 232 staff employed at the Riccarton site, who were told on 9 April that Sanford was considering the future of mussel processing in Christchurch. Recent weather patterns had impacted on natural spat (offspring) supply... More>>

ALSO:

Price Of Cheese: Dairy Product Prices Fall To The Lowest This Year

Dairy product prices fell in the latest GlobalDairyTrade auction, hitting the lowest level in the 2015 auctions so far, as prices for milk powder and butter slid amid concern about the outlook for commodities. More>>

ALSO:

Houston, We Have An Air Route: Air New Zealand To Fly Direct To The Heart Of Texas

Air New Zealand will fly its completely refitted Boeing 777-200 aircraft between Auckland and Houston up to five times a week opening up the state of Texas as well as popular nearby tourist states such as Louisiana and Florida. More>>

ALSO:

Scoop Business: Reserve Bank’s Spencer Calls On Govt To Rethink Housing Tax

The Reserve Bank has urged the government to take another look at a capital gains tax on investment in housing, allow increased high-density development and cut red tape for planning consents to address an over-heated Auckland property market. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news