NZ-based Fletcher Building has cancelled its dividend, suspended its buyback and withdrawn its 2019-20 earnings guidance.
CEO, Ross Taylor said in a statement on Wednesday “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. For this reason, the Board has decided to withdraw Fletcher Building’s FY20 EBIT guidance.”
“Since the FY20 Half Year Results announcement in mid-February, our businesses have continued to trade largely in line with expectations.
“The Board is focused on preserving liquidity through what is likely to be a challenging trading period for an unknown duration.
“In addition to a range of other cash protection measures to be taken across all the Group’s businesses, the Board has decided to cancel the FY20 interim dividend which was due to have been paid on 9 April 2020, and to suspend the on-market share buyback programme,” Mr Taylor said.
“Health and safety is our first priority and over the past two months we have put in place measures to protect the well-being of our people.
“To this point, we have had a strong response from both our local and international suppliers, and there has been no material disruption to our manufacturing, distribution, residential and construction operations,” Mr Taylor said.
The company also said it is halting the sale process for the Rocla concrete pipes business that was announced at the Group’s interim results in February.