Fletcher Building has scrapped its full year guidance, cancelled its interim dividend and suspended its share buyback in response to measures designed to slow the spread of the Covid-19 coronavirus.
Fletcher Building chief executive Ross Taylor Photo: RNZ / Dan Cook
The government has banned all non-critical construction activity over the Level 4 four-week lockdown, which goes into effect from midnight.
One of Fletcher's largest customers, Precinct Properties, announced it was closing down the construction of the nearly $900 million Commercial Bay development.
Non-essential work to repair the International Convention Centre, under construction by Fletcher Construction in Auckland, which was severely damaged by a fire in October, would also be affected.
Its construction work on Auckland's City Rail Link was also put on hold yesterday.
"Since the FY20 half hear results announcement in mid-February, our businesses have continued to trade largely in line with expectations," Fletcher Building chief executive Ross Taylor said.
"However, it is now clear that Covid-19 and the significant escalation of government protection measures in New Zealand and Australia will have a material impact on our operations and our FY20 financial results."
He said the board was focused on preserving the company's liquidity through what was likely to be a challenging trading period for an unknown duration.
The company would also pause the planned divestment of the Rocla business.