Sharechat Logo

Transpacific writes down NZ division goodwil

Friday 1st July 2011

Text too small?

Australian waste management company Transpacific Industries has written down the goodwill of its New Zealand division by between about $A180-200 million ($NZ233-259m) on lower expectations for the rate of growth in this country.

The impairment makes up the bulk of an expected total non-cash write-down announced today by the company on the carrying value of intangible assets of $A225-250m.

Transpacific took over company Waste Management in this country in 2006 in a deal worth $870m.

Today Transpacific said the write-down in New Zealand arose solely from the need to apply a more conservative future growth rate to the NZ division given the difficulties facing the economy, both generally and as a consequence of recent natural disasters.

Despite that, Transpacific also said the Christchurch earthquakes and one off projects had added about 2.5 percent to revenue for the 2011 financial year.

Involvement in the Christchurch recovery could see New Zealand revenue growth for 2012 exceed the rule of thumb "GDP (gross domestic product) + CPI (consumer price index)" formula, Transpacific said.

The NZ division write-down did not reflect the company's business performance in this country which continued to be strong.

NZ division profit growth in New Zealand dollar terms in 2011 was "robust", underpinned by greater specialist waste treatment work orders, a focus on internal process efficiency, and ongoing support to quake recovery activities.

NZPA



  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:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report