The New Zealand stock exchange has found Fletcher Building did not breach continuous disclosure rules in relation to two forecast earnings downgrades last year.
In a statement published this morning, NZX Regulation said its investigation found the company acted promptly in releasing material information after management and directors became aware of it, in both March 2017 and July 2017.
On March 20, 2017, Fletcher cut its 2017 earnings forecast by $110 million, or about 15 per cent, saying that its buildings and interiors business unit had seen weaker performance than it had previously understood. Trading in the stock was halted on March 17.
NZX Regulation said Fletcher had become aware there was a material risk it would miss guidance on the evening of March 16 and applied for the trading halt while it sought further information. The timing and duration of the trading halt were appropriate and the disclosure prompt, NZX Regulation said.
On July 20, 2017, Fletcher again slashed its full-year earnings forecast by between $85m and $125m, or 14 per cent to 19 per cent, saying operating earnings for the financial year ended June 30 were about $525m. It also dumped chief executive Mark Adamson.