Hit by write-downs and restructuring costs.
Wesfarmers expects its full-year profit to be impacted by up to $2.3 billion in write-downs and restructuring costs for Target.
The company will take a non-cash impairment of up to $1.3 billion on its Target business, mainly on the value of goodwill. It will also take $145 million of restructuring costs and provisions associated with the retail chain.
Wesfarmers will also take a non-cash impairment of as much as $850 million against its coal business, Curragh.
Chief executive Richard Goyder said the write-downs reflected difficult market conditions in both Target and Curragh.
“We remain confident that operationally we have the right plans to improve future performances over time. Whilst Target has made operational progress in recent years, market competition and disruption has continued to accelerate, including the strong performance of Kmart,” he said.