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

 


Holcim writes down NZ manufacturing assets ahead of closure

Holcim writes down NZ manufacturing assets ahead of closure

By Pam Graham

July 7 (BusinessDesk) – Writedowns ahead of the closure of Holcim New Zealand’s Westport cement manufacturing plant in 2016 have blown a hole in the company’s accounts.

The accounts for the New Zealand holding company, Fernhoff Ltd, for the year to Dec. 31, 2013 filed to the Companies Office on Friday show $31 million of charges for the plant, comprising a $23 million impairment and $8 million project cost writedown.

The plant will close by the second half of 2016 when new import facilities at Waitemata in Auckland and Timaru costing $100 million are fully operational.

Plans for a new cement manufacturing plant at Weston in North Otago remain on hold but the company is keeping the assets so it has the option of “eventually building a new cement plant”.

“The directors note the impact on the financial statements due to the announced pending closure of the Westport cement manufacturing plant,” the Fernhoff accounts say.

The directors point out assets exceed liabilities in the balance sheet after the writedowns by $67.5 million. However, the balance sheet shows $55 million of intangible assets, most of which is goodwill for the cement, concrete, lime business.

The company is trying to sell its lime business, which it no longer regards as core business.

McDonalds Lime is majority owned by Holcim NZ and part-owned by New Zealand Steel and it has the country’s largest lime quarry at Oparure, north of Te Kuiti. The company also wholly owns Taylor’s Lime at Dunback in North Otago.

Holcim had sales in New Zealand of $200.57 million in calendar 2013, down from $219.4 million the previous year. It did not comment on supplies to the Canterbury rebuild.

Depreciation and impairment charges are taken above the line, producing a loss before tax of $51.8 million compared to a loss of $10.2 million last year when there was also $26.8 million of depreciation and impairment charges.

The company has deferred tax losses, which provided a $15.9 million positive in the income statement, helping to after-tax loss of $35.9 million. Holcim’s local unit reported a net loss of $7.8 million in 2012.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Igniting The Spark: Bringing The Digital Enabler To Life

Changing a name is, relatively speaking, the easy part of a re-invention. Changing a culture, getting all the ducks in a row, turning yourself inside-out to become customer-inspired is a much bigger challenge. More>>

ALSO:

Ebola And NZ: Targeted Screening At Airport But Risk Low

The risk of any cases of Ebola in New Zealand remains very low, but health and border authorities are well prepared... anyone arriving in New Zealand who in the last three weeks has visited countries affected will be screened for symptoms of the disease. More>>

ALSO:

Scoop Business: Brewer Seeking Crowd-Funding Cancels Shareholders’ Dividends

Shareholders in Renaissance Brewing company, the first business to seek equity through crowd-funding in New Zealand, have cancelled their claim on $147,000 of accumulated earnings “to make Renaissance a more attractive investment opportunity.” More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news