By Paul Hayes
WELLINGTON, NEW ZEALAND: Fisher & Paykel announced this morning that it is likely to take further non-cash charges for asset impairments.
According to its announcement, the company expects to take charges of up to NZ$26.5 million before tax.
Of that amount, NZ$15 million will be for intangible assets, while the remaining NZ$11.5 million is set for tangible assets.
Fisher & Paykel said that the charges, which will be detailed in the company’s annual report on 28 May, will not affect normalised earnings but will be reported as part of abnormals.
The impairment charge for asset impairments, which are often taken due to extraordinary circumstances such as significant depreciation of a company’s market value, comes during a downward cycle in the retail industry, with several major retailers recently posting negative sales results and forecasts.
Fisher & Paykel’s posted a first-half net loss of NZ$82.4 million in November last year.