Sharechat Logo

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

Friday 3rd February 2017

Text too small?

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

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Asset Plus sells Heinz Watties distribution centre for $29.1 mln
18th July 2019 Morning Report
COMMENT: RBNZ's key political omission in its bank capital proposals
ANZ and Westpac credit rating outlooks downgraded to 'negative' outlook: Fitch
MARKET CLOSE: NZ shares edge higher in quiet trading; weaker currency buoys exporters
NZ dollar stalled amid uncertainty about US rate cuts
RBNZ a 'poor communicator' - CBL's Harris
Methane reduction target could be catastrophic - Fonterra Shareholders' Council
Greater role for gas in electrification of transport, industry
Chorus sees growth in high value gigabit fibre plans

IRG See IRG research reports