it says they need Commerce Commission approval but I thought FBU ditched their Steel division.
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it says they need Commerce Commission approval but I thought FBU ditched their Steel division.
Sounds like a sinking ship buying a sinking ship to me ...
history doesn't show a background of successful acquisitions from this company.
i got the impression they were going to stick to the knitting and focus on the core business.
a little bit more soul searching perhaps before on the acq trail again?
the FBU June 2018 Annual report has 7 divisions with steel being one of these. The STU takeover if it occurs would basically double the size of the FBU steel division so that it is no longer the smallest FBU division (by revenue).
FBU Steel had revenue of $532m and operating earnings of $41m (before a share of corporate costs, interest or tax) in the year to June 2018. It was FBU's fastest growing division in 2018 (by revenue) @ +8% from $491m of revenue in 2017.
STU had revenue of $496m, down from $511.4m in the prior year. As we know STU posted a loss but is expecting circa $25m EBIT in 2019 and is targeting to returning to an EBIT of $40m. This is pretty similar to what FBU achieves on its steel division.
Looks like it is going to test the $6 again. Question is - will the support hold?
I don't know the answer to above, but I am sure I wouldn't pay that much for a FBU share :);
Support running for the hills?
Selling stuff !
But at a loss :+(
Its always the extraordinaries that get ya with this one
"Once finalised, it is expected that the sale will result in anon-cash loss on disposal of NZ$15 - $20 million against the current carrying value of the business, to be included in Fletcher Building's HY19 results. This will be incurred as a significant item and therefore not affect previous statements on the outlook for Fletcher Building FY19 EBIT (before significant items).
forced sale gives a dead rat.