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But billion dollar net debt
FBU - Fletcher Building
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but market share might be more valuable to someone
look at how WES grabbed Coles/Myers when nobody else would offer a deal
i am not saying WES will bite here but somebody might see a silver lining ( or tax write-down )
am just surmising on why Allan Gray might be interested , they ( Allan Gray ) aren't notorious for lending out shares , but probably do sometimes .
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FBU is in my bulging 'too hard' basket, mainly because of the unsettled 'leaking pipes' matter and whether there is liability attaching to FBU.
But taken purely as a chart, it is not one I would buy anyway (yet) because long term lows appear to have been breached with no sign of an end (again with the 'yet')
The fact that FBU was down around these long term lows was enough for Greg Canavan of 'fat tail' to move it back to a measured 'buy', but this suggestion was released 8 May, days before the company's trading update:
8 May, fat tail investment advisory:
" Lastly, I have also changed Fletcher Building [ASX:FBU] from a hold to a buy. The share price has come right back down to the former lows. It’s a higher-risk play, given the uncertainty around management changes and its strategic direction, but I think it’s worth it, provided you keep your exposure to manageable levels."
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But taken purely as a chart, it is not one I would buy anyway (yet) because long term lows appear to have been breached with no sign of an end (again with the 'yet')
The fact that FBU was down around these long term lows was enough for Greg Canavan of 'fat tail' to move it back to a measured 'buy', but this suggestion was released 8 May, days before the company's trading update:
8 May, fat tail investment advisory:
" Lastly, I have also changed Fletcher Building [ASX:FBU] from a hold to a buy. The share price has come right back down to the former lows. It’s a higher-risk play, given the uncertainty around management changes and its strategic direction, but I think it’s worth it, provided you keep your exposure to manageable levels."
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well i did buy a fair while back , and that part of the portfolio ain't pretty ( not as bad as some fleabags , but nowhere near break-even either )
( currently down more than 48% )
am more worried the underlying economy ( in Oz and NZ ) has more downturn to inflict on this stock ( and LLC , which i also hold )
( currently down more than 48% )
am more worried the underlying economy ( in Oz and NZ ) has more downturn to inflict on this stock ( and LLC , which i also hold )
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@divs4ever - I am surprised with full humility that even people like you have erred on making right decisions such as FBU
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i make my share of errors as well
and sometimes hopeless bumbling stocks come back ( and sometimes they don't )
is this downhill all the way , or can it fight back , if the second some careful buying at these times could look clever , but there is some chance this will be taken-over before you can recover much of the previous losses , given the current soft economy .
and sometimes hopeless bumbling stocks come back ( and sometimes they don't )
is this downhill all the way , or can it fight back , if the second some careful buying at these times could look clever , but there is some chance this will be taken-over before you can recover much of the previous losses , given the current soft economy .
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Greg Canavan (fat tail investment advisory) reiterated his speculative 'buy' today for FBU but only for a small p/f allocation and warns it's an investment that will take patience. It was a longish essay which I didn't read carefully but he mentioned the debt and a likely sale of an asset in 2025, Aussie Tradelink, to reduce the debt and also approved of the dividend suspension.
He raised the prospect of a private equity offer if the market cap continues to languish.
Only made a brief mention of the plumbing pipes liability issue:
"And although management didn’t mention the WA plumbing issues on the analyst call, The Australian reported:
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He raised the prospect of a private equity offer if the market cap continues to languish.
Only made a brief mention of the plumbing pipes liability issue:
"And although management didn’t mention the WA plumbing issues on the analyst call, The Australian reported:
Take that with a grain of salt. But if accurate, that’s a good outcome."
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Should I believe Greg and Motley Fool?
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Of course not, just passing on his view. I'd certainly take more notice of it than mine.
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i use both with some salt and pepper and add sauce if intending to bite ( and research independently , of course )
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Procedural judgment received on NZICC subcontractor claim
Auckland, 13 May 2024: Fletcher Building Limited (the “Company”) notes the procedural judgment released today by the High Court of New Zealand relating to Fletcher Construction Company Limited and its claims against MPM Waterproofing Services and JEL Waterproofing Limited, the subcontractors responsible for the membrane roofing work on the NZICC project.
FCC alleges that the fire was caused by MPM and/or JEL and is seeking recovery of its uninsured losses, which are significant, some of which are described in the judgment.
The High Court judgment relates to a procedural issue and makes no substantive findings in relation to the claims.
The Company confirms that the costs and claims noted in the judgment have been fully considered in the Company’s current position on the NZICC project and do not change the provision position or risk factors disclosed as per our 2024 Interim financial statements.
i hold FBU
please note this claim is entirely different to the WA dispute
Auckland, 13 May 2024: Fletcher Building Limited (the “Company”) notes the procedural judgment released today by the High Court of New Zealand relating to Fletcher Construction Company Limited and its claims against MPM Waterproofing Services and JEL Waterproofing Limited, the subcontractors responsible for the membrane roofing work on the NZICC project.
FCC alleges that the fire was caused by MPM and/or JEL and is seeking recovery of its uninsured losses, which are significant, some of which are described in the judgment.
The High Court judgment relates to a procedural issue and makes no substantive findings in relation to the claims.
The Company confirms that the costs and claims noted in the judgment have been fully considered in the Company’s current position on the NZICC project and do not change the provision position or risk factors disclosed as per our 2024 Interim financial statements.
i hold FBU
please note this claim is entirely different to the WA dispute
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This company seems to be lurching from one problem to another since mid 2021.
Mgt must be the problem. Not interested in this anymore.
Mgt must be the problem. Not interested in this anymore.
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well if you haven't skin in that game , i can see your logic
there are others ( companies ) with a less complicated future
there are others ( companies ) with a less complicated future
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Fletcher Building Update on Banking Agreements
Auckland, 3 June 2024:
Fletcher Building Limited (the “Company”) today announced amendments to its banking agreements which will extend the tenor of its debt facilities, and enable it to rely on more favourable terms for covenant testing through to the end of calendar 2025 if required.
Acting CEO Nick Traber said: “Given the current market environment and outlook, we have taken pre-emptive steps to reinforce the Company’s resilience for the mediumterm to position ourselves to navigate the tougher trading conditions.
“With between $0.8 billion and $0.9 billion of liquidity expected at 30 June 2024 we have a solid liquidity position, and have today announced agreements with our lending partners which reflect their ongoing support and confidence in Fletcher Building.
” The Company has entered into two agreements with its lenders.
First, the Company has agreed with its Syndicated Facility Agreement (“SFA”) lenders to refinance Tranche D of the SFA.
This A$674.5m facility was scheduled to expire in October 2025.
The agreement extends the expiry date for this facility into two longerdated maturities: A$424.5 million will now expire in July 2027, and A$250 million will expire in May 2029.
The agreement significantly improves the tenor of the Company’s funding lines, such that the next material debt maturity is in FY27. Secondly, Fletcher Building has agreed certain amendments with all of its lenders (SFA, Club Loan, and USPP) which will enable it to rely on more favourable terms for covenant testing for its Senior Interest Cover and Senior Leverage covenants for the period from June 2024 to December 2025 (inclusive) if required.
Should the Company need to rely on the amended covenant levels, it will not pay a dividend until it agrees to be tested by, and complies with, its existing covenant levels.
The existing and amended covenant levels are shown in the following table:
The Company confirms that it expects to be in compliance with its existing covenant levels at June 2024.
#Ends
i hold FBU
Auckland, 3 June 2024:
Fletcher Building Limited (the “Company”) today announced amendments to its banking agreements which will extend the tenor of its debt facilities, and enable it to rely on more favourable terms for covenant testing through to the end of calendar 2025 if required.
Acting CEO Nick Traber said: “Given the current market environment and outlook, we have taken pre-emptive steps to reinforce the Company’s resilience for the mediumterm to position ourselves to navigate the tougher trading conditions.
“With between $0.8 billion and $0.9 billion of liquidity expected at 30 June 2024 we have a solid liquidity position, and have today announced agreements with our lending partners which reflect their ongoing support and confidence in Fletcher Building.
” The Company has entered into two agreements with its lenders.
First, the Company has agreed with its Syndicated Facility Agreement (“SFA”) lenders to refinance Tranche D of the SFA.
This A$674.5m facility was scheduled to expire in October 2025.
The agreement extends the expiry date for this facility into two longerdated maturities: A$424.5 million will now expire in July 2027, and A$250 million will expire in May 2029.
The agreement significantly improves the tenor of the Company’s funding lines, such that the next material debt maturity is in FY27. Secondly, Fletcher Building has agreed certain amendments with all of its lenders (SFA, Club Loan, and USPP) which will enable it to rely on more favourable terms for covenant testing for its Senior Interest Cover and Senior Leverage covenants for the period from June 2024 to December 2025 (inclusive) if required.
Should the Company need to rely on the amended covenant levels, it will not pay a dividend until it agrees to be tested by, and complies with, its existing covenant levels.
The existing and amended covenant levels are shown in the following table:
The Company confirms that it expects to be in compliance with its existing covenant levels at June 2024.
#Ends
i hold FBU
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Fletcher Building notifies Moody’s rating amendment
Auckland, 5 June 2024:
Fletcher Building Limited (the “Company”) has been notified that credit rating agency Moody’s Ratings has amended the Company’s credit rating from Baa2 on a stable outlook to Baa3 on a negative outlook.
This amendment also applies to the rating for the Company’s medium-term note (MTN) program.
The amended rating does not have a material impact on the Company’s cost of funding in the near-term.
Fletcher Building Acting CEO Nick Traber said: “The Company remains committed to the credit metrics which underpin our original rating of Baa2 on a stable outlook.
We will continue to work with Moody’s with an objective of returning our rating to this level over time.”
#Ends
i hold FBU
is $2 coming ???
seems like Moody's wasn't impressed with the new moves
Auckland, 5 June 2024:
Fletcher Building Limited (the “Company”) has been notified that credit rating agency Moody’s Ratings has amended the Company’s credit rating from Baa2 on a stable outlook to Baa3 on a negative outlook.
This amendment also applies to the rating for the Company’s medium-term note (MTN) program.
The amended rating does not have a material impact on the Company’s cost of funding in the near-term.
Fletcher Building Acting CEO Nick Traber said: “The Company remains committed to the credit metrics which underpin our original rating of Baa2 on a stable outlook.
We will continue to work with Moody’s with an objective of returning our rating to this level over time.”
#Ends
i hold FBU
is $2 coming ???
seems like Moody's wasn't impressed with the new moves
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Management was definitely the issue from the board down. Let too many experienced people leave & senior leadership seemed not to fully understand or ask the right questions about some chunky projects the were signing off on. I've watched them take one of their most successful building product business units & replace it with a lemon. In fact apart from a new building I don't think there was one aspect of the project that actually improved their situation. I wish I could say more, it's borderline criminal.
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Fletcher Building Announces Board Changes
Auckland, 18 June 2024:
Fletcher Building Limited (the “Company”) today announced that Martin Brydon has informed the Board of his intention to step down as a director at the Company’s 2024 Annual Shareholder Meeting in October.
Fletcher Building Acting Chair Barbara Chapman expressed the Company’s appreciation for Mr Brydon’s contribution as a director since 2018: "Martin’s experience and industry insights have been greatly valued and I would like to thank him for the commitment and energy he has shown over the past several years.
The Board vacancy resulting from Martin’s decision to step down will be addressed as part of the broader Board renewal process that is already underway, which includes a search process to find replacement directors with the necessary skills and experience."
#Ends
i hold FBU
Auckland, 18 June 2024:
Fletcher Building Limited (the “Company”) today announced that Martin Brydon has informed the Board of his intention to step down as a director at the Company’s 2024 Annual Shareholder Meeting in October.
Fletcher Building Acting Chair Barbara Chapman expressed the Company’s appreciation for Mr Brydon’s contribution as a director since 2018: "Martin’s experience and industry insights have been greatly valued and I would like to thank him for the commitment and energy he has shown over the past several years.
The Board vacancy resulting from Martin’s decision to step down will be addressed as part of the broader Board renewal process that is already underway, which includes a search process to find replacement directors with the necessary skills and experience."
#Ends
i hold FBU
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I am trying to make a decision on what to do with my shares. It's comical; I worked for them for over a decade and bought most of my shares at over three times what they are worth now. It's sad for all the long-term grafters in the place who believed in the business and invested back into it.
The situation FBU has gotten themselves into is appalling. Thinking back, I could pinpoint the exact time I should have sold.
Around 2021, FBU's intranet content became very "woke," heavily focusing on gender equality and LGBTQ+ issues. Every time I opened it to process leave or something similar, there would be articles on their latest woke initiative—such as rainbow-painted concrete mixers (an 8-10K waste of money), participation in the Hero Parade, and gay pride month breakfasts for businesses (costing $35-40 per head, I'd guess) along with the lost productivity from people standing around yapping about it for the morning.
At the time, I laughed about it with my direct team; it seemed like a huge distraction and waste of money and other resources. The FBU Corporate office seemed to have lost focus on their core activities. Instead of reading about achievements or milestones in construction, new technologies, or developments in manufacturing, we were inundated with these social initiatives. That shift in focus was odd for a construction and building materials business. Anyway, I see there are now more articles to read, and the shares are still dropping.
The situation FBU has gotten themselves into is appalling. Thinking back, I could pinpoint the exact time I should have sold.
Around 2021, FBU's intranet content became very "woke," heavily focusing on gender equality and LGBTQ+ issues. Every time I opened it to process leave or something similar, there would be articles on their latest woke initiative—such as rainbow-painted concrete mixers (an 8-10K waste of money), participation in the Hero Parade, and gay pride month breakfasts for businesses (costing $35-40 per head, I'd guess) along with the lost productivity from people standing around yapping about it for the morning.
At the time, I laughed about it with my direct team; it seemed like a huge distraction and waste of money and other resources. The FBU Corporate office seemed to have lost focus on their core activities. Instead of reading about achievements or milestones in construction, new technologies, or developments in manufacturing, we were inundated with these social initiatives. That shift in focus was odd for a construction and building materials business. Anyway, I see there are now more articles to read, and the shares are still dropping.
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Fletcher Building Provides Golden Bay Shipping Update
Auckland, 29 July 2024: Fletcher Building’s Golden Bay cement business is currently experiencing operational issues with the Marine Vessel Aotearoa Chief (MVAC) whichis owned and operated by a third-party provider.
The ship transports cement around the North Island from Golden Bay’s Portland manufacturing facility.
Due to a mechanical issue, the vessel is currently docked at Northport while inspections and repairs are made by the owner.
The time frame required to make the necessary repairs, and source replacement parts, is not known at this time.
Our key priority is maintaining the supply chain and this is being actively worked through in order to minimise any potential disruption to North Island customers while the MVAC is being repaired.
Golden Bay has made significant investments over the past several years which puts the company in a position to offer contingencies in the event of disruption to its distribution network.
Golden Bay is engaging with its customers and has enacted its contingency plans,which include the immediate use of alternative transport options to distribute cement.
These options include the use of its existing coastal barge and the greater use of road and rail options.
The company is also investigating longer term solutions, which include potentially sourcing the use of alternative cement supplies from domestic and offshore suppliers along with securing the use of a replacement ship if required.
Fletcher Building’s preliminary assessment is that it expects the impact on FY25 earnings due to the disruption to be in the range of $10 million to $30 million, driven by the anticipated increased costs of supply from the range of mitigating actions expected to be adopted by it.
However, the actual impact will depend on a number of variables that are not yet known, including the duration of the issue, the mitigation actions available, the third-party costs associated with those mitigating actions and the impact on operations.The company will update the market as more information becomes available on the status of the MVAC.
#Ends
i hold FBU
trouble just keeps on targeting FBU , one might have thought they would have had a short-term plan ready , gathering dust on the shelf ( even if not the perfect temporary option )
Auckland, 29 July 2024: Fletcher Building’s Golden Bay cement business is currently experiencing operational issues with the Marine Vessel Aotearoa Chief (MVAC) whichis owned and operated by a third-party provider.
The ship transports cement around the North Island from Golden Bay’s Portland manufacturing facility.
Due to a mechanical issue, the vessel is currently docked at Northport while inspections and repairs are made by the owner.
The time frame required to make the necessary repairs, and source replacement parts, is not known at this time.
Our key priority is maintaining the supply chain and this is being actively worked through in order to minimise any potential disruption to North Island customers while the MVAC is being repaired.
Golden Bay has made significant investments over the past several years which puts the company in a position to offer contingencies in the event of disruption to its distribution network.
Golden Bay is engaging with its customers and has enacted its contingency plans,which include the immediate use of alternative transport options to distribute cement.
These options include the use of its existing coastal barge and the greater use of road and rail options.
The company is also investigating longer term solutions, which include potentially sourcing the use of alternative cement supplies from domestic and offshore suppliers along with securing the use of a replacement ship if required.
Fletcher Building’s preliminary assessment is that it expects the impact on FY25 earnings due to the disruption to be in the range of $10 million to $30 million, driven by the anticipated increased costs of supply from the range of mitigating actions expected to be adopted by it.
However, the actual impact will depend on a number of variables that are not yet known, including the duration of the issue, the mitigation actions available, the third-party costs associated with those mitigating actions and the impact on operations.The company will update the market as more information becomes available on the status of the MVAC.
#Ends
i hold FBU
trouble just keeps on targeting FBU , one might have thought they would have had a short-term plan ready , gathering dust on the shelf ( even if not the perfect temporary option )
