Show your support by donating any amount. (Note: We are still technically a for-profit company, so your
contribution is not tax-deductible.)
PayPal Acct: 
Feedback: 
Donate to VoyForums (PayPal):
| [ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, 4, 5, [6], 7, 8 ] |
| Subject: Lend Lease | |
|
Author: an example of a provision |
[
Next Thread |
Previous Thread |
Next Message |
Previous Message
]
Date Posted: 18:11:36 01/22/03 Wed Lend Lease takes US$300m REI hit 23-January-2003 Lend Lease Corporation (LLC) announced Thursday morning that it would make a US$300 million (A$513 million) provision against the value of its US Real Estate Investments business. The company also confirmed that before the provision, its 2003 financial year earnings were on track to beat last year slightly. Lend Lease said the provision reflected a diminution in the carrying value of its US REI business as a result of reduced medium term earnings expectations. The group blamed problematic US real estate markets, record low US interest rates and a poor US economy for the reduced expectations. “Absent this provision, the Group's earnings outlook for 2003 remains unchanged and therefore the Group continues to expect a slight increase over the 2002 result,” he added. For the year ended 30 June 2002 Lend Lease reported a net profit of $226.3 million although this was boosted by a number of one-off items. The international property manager and developer is currently reviewing its US REI assets but new chief executive Greg Clarke said this morning that “no decision” has yet been made. “We have examined a wide range of options for the US REI business, including restructuring the businesses; establishing strategic alliances, joint ventures or partnerships; acquisitions; and divestment of part or all of the US REI business,” said Clarke. “However, we have formed the view that a provision is necessary regardless of the course of action ultimately pursued,” he said. SHAW Stockbroking’s industrial analyst Brent Mitchell said that although today’s news may cause some short-term weakness, the market’s focus remained on the outcome of the review of the US REI assets. “It could be interpreted as cleaning them up to sell while there may also be an element of the new MD clearing the decks as fast as he can,” Mr Mitchell said. SHAW Stockbroking is currently forecasting a full year profit of $319 million before amortisation and one-offs. Lend Lease will report its December 2002 half year results on 20 February 2003. At the close of trading yesterday Lend Lease shares were 15c higher at $10.05. [ Next Thread | Previous Thread | Next Message | Previous Message ] |