FBU - Fletcher Building

[Beagle]

Nice info Balance, but negligence is a very tough area to get a payout for. What would a reasonable person do? I assume leaving a blow torch on would be hard to classify as reasonable...

Maybe because he is young that is what they do therefore reasonable for a 20yr old...- leave stuff on and forget about. I think the building site management and processes are going to looked at very closely.

One thing I do know if Im stumping up for a $100M+ payout Im not wanting to cover a person dropping a blowtorch and forgetting about it. Was it deliberate?

Interesting reading: https://insider.zurich.co.uk/industr...ers-need-know/

https://insider.zurich.co.uk/app/upl...ork-Permit.pdf

https://insider.zurich.co.uk/app/upl...ks-safety_.pdf

Fascinating stuff, I won't read it all but I wouldn't mind betting a bob or two neither has anyone from Fletchers as the whole project has been run the exact opposite of a well oiled and cooled Swiss watch.

[Sideshow Bob]

Announcement Today:

Update on NZICC fire

6/11/2019, 8:30 amGENERAL

Update on NZICC fire
Auckland, 6 November 2019: Fletcher Building Limited (“Fletcher Building”) today provided an update on the New Zealand International Convention Centre project (“NZICC”), which was damaged by a significant fire that started on 22 October.
Over the past two weeks, Fletcher Construction staff have been working closely with fire and emergency services teams, local authorities, and SkyCity to manage the impact of the fire. Fletcher Building wishes to acknowledge the considerable efforts of people from across these organisations for their hard work and support during this period, along with the people of Auckland for their understanding during this disruption.
The NZICC site has now been handed back to Fletcher Construction, though access remains restricted as safety and structural assessments and investigations into the cause of the fire are completed.
Fletcher Building is working closely with the insurer for the Contract Works and Third Party Liability insurances which are in place on the project. Fletcher Building notes and agrees with the comments by SkyCity confirming the credibility of the insurer and their ability to meet their obligations.
Fletcher Building is working to determine the impact of the NZICC fire on the project’s delivery timeline and costs, the timing of insurance proceeds and project cash flows, and any potential impact on the Construction provisions announced in February 2018. The Company confirms that based on information currently available it remains within these provisions.
The Company will continue to give active consideration to this matter as additional information becomes available, and expects to be in a position to provide a further update at its half-year results announcement in February 2020.
#Ends

[winner69]

Things won’t be getting any better for Fletchers in Australia

https://www.news.com.au/finance/busi...c3c6260f0d8fbe

[Balance]

Nice rise by FBU today.

Another escape from the much dreaded exit from the MSCI quarterly re-indexing today - so shorters were scrambling to cover.

Interesting that Mercury has been added back without FBU being taken out - suggesting that NZ's indexing on the MSCI global index has gone up slightly to accommodate the two.

In which case, FBU should be safe from being exited for a while.

[artemis]

Appears Fletchers may be getting a big payout for Ihumatao. Thanks Auckland ratepayers. Soz to the 480 home buyers.

[Sideshow Bob]

https://www.nzx.com/announcements/345090

FY20 Guidance: Fletcher Building expects EBIT before significant items for FY20 to be in the range of $515 million to $565 million. In FY19 EBIT before significant items (after adjusting for discontinued operations) was $549 million.

[Sideshow Bob]

https://www.nzx.com/announcements/345090

FY20 Guidance: Fletcher Building expects EBIT before significant items for FY20 to be in the range of $515 million to $565 million. In FY19 EBIT before significant items (after adjusting for discontinued operations) was $549 million.

Key is significant items. Is everything out of the closet??

[Balance]

Key is significant items. Is everything out of the closet??

She's a big organization which has been allowed to run feral under the previous board and management - be a little while yet to get all the house-cleaning done.

But hopefully, the big ones are out of the way.

Then, you get an unexpected event like the NZICC fire!

[value_investor]

https://www.nzx.com/announcements/345090

FY20 Guidance: Fletcher Building expects EBIT before significant items for FY20 to be in the range of $515 million to $565 million. In FY19 EBIT before significant items (after adjusting for discontinued operations) was $549 million.

Charlie Munger used to call EBIT or EBITDA "earnings before all the important stuff", there's always something with FBU imo. The presentations are usually very positive but usually a case of over promising and under delivering.

[traineeinvestor]

Charlie Munger used to call EBIT or EBITDA "earnings before all the important stuff", there's always something with FBU imo. The presentations are usually very positive but usually a case of over promising and under delivering.

At least they're consistent.