Fletcher Building in trading halt amid review

An artist's impression of the Justice Precinct in Christchurch. Image: Justice Department
An artist's impression of the Justice Precinct in Christchurch. Image: Justice Department

Fletcher Building has gone into a trading halt while it reviews the financial performance of one of its units after two profit downgrades this year.

The company told the stock exchange it is reviewing the financial performance of its Building + Interiors (B+I) business unit and the impact "on earnings guidance for the 2018 financial year".

KPMG is running the ruler over two of the largest projects in the B+I business and Fletcher said this was informing its review.

The trading halt should lift tomorrow, with the announcement of earnings guidance for the next financial year.

The company also expects to announce the appointment of its new chief executive before the market opens tomorrow.

Former chief executive Mark Adamson left the company immediately in July as it announced a second earnings downgrade amid cost blowouts at two major construction projects - widely believed to be the Auckland convention centre and the Justice Precinct in Christchurch.

The company, at the time, also disclosed a $220 million impairment against its Iplex Australia and Tradelink business units.

Meanwhile, up to 50 Fletcher Building workers will walk off the job today and more industrial action is to take place outside the building giant's annual general meeting tomorrow.

According to First Union, which represents the striking workers, about 50 workers had already walked off the job from Fletcher-owned companies Laminex, Mico, Humes and Firth Concrete.

Another 40 to 50 workers would be walking off today from Winstones Aggregates and the Hunua Quarry.

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