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BRIEF-Fletcher Building Says Reducing Workforce By About 10%

Published 20/05/2020, 06:50 am
Updated 20/05/2020, 06:54 am
© Reuters.

May 20 (Reuters) - Fletcher Building FBU.NZ :

* EXPECT COVID-19 WILL LEAD TO A SHARP DOWNTURN IN FY21 AND POTENTIALLY BEYOND

* REDUCTIONS OF 30% TO BOARD & CEO PAY WILL REMAIN IN PLACE THROUGH TO END OF SEPT

* GROUP'S NEW ZEALAND BUSINESSES CURRENTLY TRADING AT AROUND 80% OF FORECASTED REVENUES IN MAY

* REDUCING NUMBER OF PEOPLE WE EMPLOY BY ABOUT 10%

* IN AUSTRALIA WE ARE UNDERTAKING A COMPREHENSIVE REVIEW OF OUR OPERATIONS

* IN AUSTRALIA EXPECT REVIEW TO RESULT IN A WORKFORCE REDUCTION IN ORDER OF 500

* REDUNDANCY AND RESTRUCTURING ACTIVITIES WILL RESULT IN SOME ONE-OFF COSTS

* IN Q4 OF FY20, CAPEX HAS BEEN REDUCED BY ABOUT NZ$60 MILLION

* TOTAL EXPENDITURE FOR FY20 IS NOW EXPECTED TO BE NZ$240 MILLION

* FY21 EXPECTS ITS CORE CAPEX ENVELOPE TO BE IN A RANGE OF NZ$125 MILLION TO NZ$150 MILLION

* REDUCING NUMBER OF PEOPLE EMPLOYED EQUATES TO ABOUT 1,000 POSITIONS IN NEW ZEALAND

* NZ$50 MILLION WILL BE INVESTED IN NEW WINSTONE WALLBOARDS PLANT IN TAURANGA IN FY21

* GROUP'S NEW ZEALAND BUSINESSES CURRENTLY TRADING AT AROUND 80% OF FORECASTED REVENUES IN MAY

* RECORDED AN OPERATING EBIT LOSS FOR APRIL OF NZ$55 MILLION

* SOME ONE-OFF COSTS

* GROUP'S AUSTRALIA BUSINESSES TRADING AT AROUND 90% OF PRE-COVID-19 EXPECTATIONS

* SEES POSITIVE EBIT FOR CORE MANUFACTURING AND DISTRIBUTION BUSINESSES IN MAY & JUNE BUT AT LOWER LEVELS THAN NORMAL

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