Tenon trims Clearwood FY earnings guidance to US$10.5M to reflect FX movements, corporate costs

Friday 3rd February 2017

Tenon, which sold its US operations for US$110 million last year, has revised full-year guidance for its remaining Clearwood New Zealand business to reflect foreign exchange movements, Tenon corporate costs and changes in product mix.

Earnings before interest, tax, depreciation and amortisation for the year ending June 30 was lowered to US$10.5 million from the US$11.8 million in a Grant Samuel report last October, the Taupo-based company said in a statement.

Shareholders approved the sale of the US operations to New York-based buyout firm Blue Wolf Capital last November, allowing the company to make a US$71 million capital return via a share cancellation. In December, the company said it was in exclusive talks with a potential buyer of Clearwood. If a deal is signed, surplus cash would be returned to shareholders and the company liquidated at an estimated cost of US$8 million, it said at the time.

The New Zealand business was valued at between US$63.3 million and US$74.1 million in Grant Samuel’s report last year.

Tenon shares last traded at $2.41, giving the company a market value of $78 million.

BusinessDesk.co.nz

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