Today, there is big news in the New Zealand business community. Interim results of Fletcher Building, a leading company in the New Zealand construction industryAppearance 1Net loss after tax of NZ$200 million, Chief Executive OfficerIt has been announced that he will resign
The 230% drop in net profit also led to the announcement by Chairman of the Board of Directors, Bruce Hassall, that he would step down at a shareholder meeting later this year.
01 Are there more performance thunderstorms?
Currently, New Zealand is starting to enterInterim results announcement season
Earlier, the market began to worry that some of New Zealand's large companies may not perform well. Some large companies, including New Zealand Airlines, have also issued performance warnings earlier.
Fletcher Building is the absolute industry leader in New Zealand, with revenue of NZ$4.2 billion in the half year ended December 31, 2023, down 1% year-on-yearEBIT 26.4 billion, down 27% year-on-year
Shareholders have been informed that:The interim dividend was cancelled
The company's CEO, Ross Taylor, earned an annual salary of more than NZ$5.4 million last year. He will beAfter the expiration of the 6-month notice periodresignation and guarantee an "orderly handover with the successor".
The current is mentioned in the communiqué"Weak trading conditions"., particularly in New Zealand's residential construction sector, saw a 20% drop in transaction volumes.
Disappointingly,On February 5, the New Zealand International Convention Centre was announced 1$6.5 billion in major project reserves, as well as Australia's Tradelink business1$2.2 billion in non-cash impairments and write-downs, which seriously affected the performance. Today's announcement said.
Source**: International Convention Centre project in central Auckland.
The company held a meeting this morning to explain the situation.
02 Millions of migrant workers Kiwis**er investment affected
Sam Stubbs, General Manager of Simplicity NZ, one of New Zealand's Kiwis**er providers, said to **Millions of Kiwis**e depositors will be affected because they have indirectly held Fletcher**
That's why many New Zealanders want a complete change in the board of directors of Fletcher Building, according to Sam Stubbs.
Sam Stubbs said he was in favor of a complete overhaul of Fletcher's board.
He said the board of directors was entrusted with managing the funds of shareholders and more than 1 million Kiwis**er investors, butEvery two or three years there will be problemsThe company says it wants to change, but new problems keep arising.
More than one analyst in the market has warned that there are multiple problems in the operation of the Fletcher Building.
Yesterday, the English-language Herald also reported calls for a change in the board.
Over the past month, the share price of Fletcher Building, which is listed on the New Zealand Main Board, has been close to 13%.
Before the suspension this morning, the company's stock price was 419 New Zealand dollars, an annual decline of 23%, with a market capitalization of 3.2 billion New Zealand dollars.