Fletcher Building has slumped to a large first half-year loss as the problems with major projects overwhelmed the earnings of the rest of the group.
Fletcher Building announces a $486 million increase in the projected losses for Fletchers' troubled Building and Interiors (B&I) division on 16 major construction projects. Photo: RNZ / Dan Cook
Its net loss for the six months ended December was $273 million compared with the previous year's profit of $176 million.
Last week the company revealed a $660 million loss for its building and interiors division because of delays and cost blow-outs on major projects.
The rest of the company, including its house building, building products, and Placemakers retail chain were all profitable, although it said there was a squeeze on some of its margins, and there are signs of a slowing in parts of the Australian housing market.
"Outside the challenges experienced in B+I (building and interiors), the broader Fletcher Building business continues to perform to guidance," chief executive Ross Taylor said in a statement.
He reiterated last week's forecast of operating earnings for the full year of between $680 million -$720 million, leaving aside the troubled B&I division.
Fletcher Building has said it will no longer bid for big commercial construction projects and RNZ understands it has pulled out of tendering to build the tunnels and stations for the Auckland city rail loop, for which it has been shortlisted.
The tender process has now been delayed for at least three months.
Fletcher Building has suspended its dividend payout to save cash as it negotiates new lending terms with its banks.