Mark Adamson, Chief Executive of Fletcher Building, has announced his resignation today, he is to step down on Monday 24th July. Coupled with the confirmation of the delay of $700m International Convention Centre in Auckland, the company’s share price has dropped by 8.4 per cent, this has pushed it to a 16-month low.

Coupled with the confirmation of the delay of $700m International Convention Centre in Auckland, the company’s share price has dropped by 8.4 per cent, this has pushed it to a 16-month low.“I am disappointed to finish my tenure on the back of a challenging result in the Construction Division, however, I am proud of what has been achieved in the last five years,”

“I am disappointed to finish my tenure on the back of a challenging result in the Construction Division, however, I am proud of what has been achieved in the last five years,” Mr. Adamson said.

According to Fletcher Building, the expected operating earnings will decrease from $760m in the beginning of the year to $525m now. The costs can be attributed to the continued losses in the building and interiors division, postponed major projects and a possible write down of roughly $220m on Ipex Australia and Tradelink- two Australian business units.

The company has however assured shareholders that cash earnings will not be affected.

An investigation of Fletcher’s latest forecast earnings drop will be carried out by the stock exchange operator NZX. This follows the investigation in the previous earnings downgrade in March. NZX will also perform a routine check on the trade of company’s shares in advance of the announcement.

“NZX will be making enquiries into today’s disclosures, given FBU’s continuous disclosure obligations under the listing rules. This is in addition to NZX’s ongoing investigation into the disclosure of FBU’s previous earnings downgrade in March,” ZNX head of market supervision Joost van Amelsfort explained.

Sir Ralph Norris, Fletcher Building chairman, said the board believed it was the right time for Mr. Adamson to leave the company.

The board has appointed Francisco Irazusta to be the position of interim chief executive and will take office on Monday. Mr. Irazusta has been in charge of the international division of the company since March 2015.

 

 

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