FBU-Fletcher Building

[snapiti]

Must admit the above is rather grim reading, especially this part :

"The investigation into a product recall is ongoing. Once finalised, advice will be provided to the Commerce Minister for her consideration.

This would be the first recall of its kind in Western Australia – it is a complex process and requires thorough investigation to ensure the best outcome for those impacted."

Impact of a product recall would be financially catastrophic for Iplex - presumably all piping installed would have to be un-installed and new approved piping installed! The mind boggles.

15000 homes involved with the suspect product used.......just to many actual events happening on a monthly basis now so I think a recall is on the cards,, dux quest all over again

[Teitei]

15000 homes involved with the suspect product used.......just to many actual events happening on a monthly basis now so I think a recall is on the cards,, dux quest all over again

Say $50,000 a home to fix - that's $750m problem!

[snapiti]

Say $50,000 a home to fix - that's $750m problem!

I had a friend have a large 2 story home completely replumbed 3 years ago due to dux quest leaks......cost 40k.....the house was big though but was 3 years ago

[BlackPeter]

Say $50,000 a home to fix - that's $750m problem!

Might be cheaper in the beginning if they get FBU to do the replumbing. Remember the pristine job they did in the Christchurch earth quake repairs - they are really good to screw big jobs up!

Only problem might be the subsequent cost they might need to budget to fix the fixes.

[Shareguy]

FBU has announced on the ASX

Fletcher Building Acknowledges BGC Legal Action
Auckland, 27 August 2024: Fletcher Building Limited (FBU) advises that it previously
(on 22 August 2024) announced that Western Australian home builder, BGC, had
advised of its intention to file legal proceedings against FBU subsidiary, Iplex Pipelines
Australia (Iplex AU), in relation to the Iplex Pro-Fit Pipes issues. Those legal proceedings
have now been received by Iplex AU.
Iplex AU intends to defend the proceedings.
FBU and Iplex AU have no further comment to make on this matter at this time.

[Teitei]

FBU has announced on the ASX

Fletcher Building Acknowledges BGC Legal Action
Auckland, 27 August 2024: Fletcher Building Limited (FBU) advises that it previously
(on 22 August 2024) announced that Western Australian home builder, BGC, had
advised of its intention to file legal proceedings against FBU subsidiary, Iplex Pipelines
Australia (Iplex AU), in relation to the Iplex Pro-Fit Pipes issues. Those legal proceedings
have now been received by Iplex AU.
Iplex AU intends to defend the proceedings.
FBU and Iplex AU have no further comment to make on this matter at this time.

What a freaking mess FBU has made of its overseas acquisitions - basically pxssing all the profits made in NZ down the proverbial overseas.

[Jay]

Heard the other day that the Skycity Conference Centre will be delayed finishing until March next year at earliest.
FBU not taking on anymore commercial projects now, the majority of work force will be made redundant, so could slow the project up??

[Basil]

What a complete and utter cluster f@$k that convention centre has been.
I sometimes wonder when driving past it whether it will ever be finished.

[Sideshow Bob]

Meanwhile......Allan announced increased their holding to over 15%.

Contrarian......

[Teitei]

What a complete and utter cluster f@$k that convention centre has been.
I sometimes wonder when driving past it whether it will ever be finished.

$1.045 billion is what is expected for the total cost to build NZICC by FBU.  Compared to initial contract price of $450m.

Staggering!

[Teitei]

Sounding ominous ... WA government to announce product recall?

https://api.nzx.com/public/announcement/437160/attachment/426151/437160-426151.pdf

[Gerald]

Wouldn't be a trading halt and a conference call if they were getting away free 

[Teitei]

Sounding ominous ... WA government to announce product recall?

https://api.nzx.com/public/announcement/437160/attachment/426151/437160-426151.pdf

No recall but agreement for FBU to carry a big chunk of the remedial cost -
A$155m or NZ$170m provision to be made.

Any bets that there will be more provisioning in future?

https://www.nzx.com/announcements/437241

[snapiti]

No recall but agreement for FBU to carry a big chunk of the remedial cost -
A$155m or NZ$170m provision to be made.

Any bets that there will be more provisioning in future?

https://www.nzx.com/announcements/437241

FBU costs/liabilities are uncapped, Aus Government capped at $30m
I would suggest this was the only way to stop a complete product recall, not sure why the market responded positively.

 "Iplex AU's offer of funding Participating Builders' direct costs at the rate of 80% is not capped. The WA Government's 20% contribution is capped at A$30 million (but there is the opportunity for parties to confer with the Government if its funding reaches A$26 million)".

[Basil]

Just what we've come to expect from FBU.  This is another convention center scale cluster f@#k in my opinion.  Years of further huge "one-off" write-off's.