The companies are rushing out their profit downgrades to the market as a result of changes to the tax and depreciation rules.
The downgrades are one-offs and should not have long-lasting impacts on the profitability of the listed companies as they readjust to the new regime.
Sky City has a $60 million downgrade to its forecast profit, by far the largest of any company so far making an announcement to the market.
Craigs Investment Partners broker Chris Timms said brokers would still be looking at what affected a company's cash flows as they were one of the most important indicators of the health of a company.
Property companies would be affected by the change in depreciation rules, but most listed companies would benefit from company tax falling to 28% next year, he said.
Companies reporting to the NZX had said the impact to their profitability from the new rules was limited.
Dividends and cash flows would be largely unaffected.
Freightways
Freightways said it expected to increase its consolidated deferred tax liability as at June 30 this year and reduce the reported net profit after tax for the year to June by an estimated $6 million.
Freightways said there might be a need to adjust its deferred tax liability further once the outcome was known of a Government review of the definition of "building structure".
Goodman Fielder
Goodman Fielder said the removal of building depreciation for tax purposes would result in a non-cash write-down in deferred tax assets of $16 million.
The food and beverage manufacturer also says full-year net profit will be $158 million to $165 million, up to an 11% fall from 2008-09.
The profit figure included the deferred tax-asset write-down and $12.5 million in costs relating to the sale of the company's commercial fats and oils business that did not go ahead, the company said.
Goodman Fielder said the business continued to trade solidly and normalised profit, excluding non-recurring items, would be between $181 million and $188 million, as much as 13% higher than the year before.
Goodman Fielder also said the reduction in New Zealand's corporate tax rate, together with the removal of building depreciation, effective July 1, 2012, were likely to improve the company's net profit after tax from 2011-12.
Steel and Tube
Steel and Tube says it expects to have a rise in deferred tax liability as at June 30 of about $4 million, along with a reduction of the same size in reported net profit after tax.
Queenstown Airport
Queenstown Airport Corporation has indicated its reported net profit will be cut by an estimated $5.8 million for the year to June.
Cavalier
Cavalier said its profit would be reduced by an estimated $4 million along with a further reduction of $1.3 million from its 50% holding in Cavalier Wool Holdings.
Fletcher Building
Fletcher Building estimates it will be required to increase its provision for deferred tax by $30 million.
The final amount will be confirmed at the full-year audit and announced on August 18.
The Warehouse Group
The Warehouse Group's reported profit for the year ended August 1 would be reduced by an estimated $23 million because of the increase in the group's deferred tax liability.
The review of the definition of "building structure" for tax purposes might also result in a further adjustment to the deferred tax liability.
Vector
Vector's net profit is expected to drop an estimated $21 million for the year ended June.
Fisher & Paykel Healthcare
Fisher and Paykel Healthcare's net profit is expected to drop $11 million.
Smiths City
Retailer Smiths City estimates the changes will reduce the net deferred tax asset and increase the tax charge by $1.9 million, "ignoring any potential impact of the group's unrecognised tax losses".
Smiths City has tax losses of more than $22 million to carry forward in future years.
Sky City
Sky City says its estimated deferred tax liability will wipe $60 million off its reported net profit for the June year and add about $2 million in tax payable by the company from July 1, 2011.
Briscoe Group
Briscoe Group's profit for the year ending January 30, 2011, will be reduced $2.6 million.
Currently, the group claims depreciation of $380,000 a year in relation to group-owned buildings.
Skellerup Holdings
Skellerup Holdings expects its profit after tax to exceed forecasts and be in the $10 million to $11 million range because of improved revenue and earnings across both the agricultural and industrial divisions.
