Transfield Services Limited
(ASX:TSE) has announced a write down of up to $285 million ahead of releasing its first half results next week.
The construction and maintenance company expects to make impairments relating primarily to its Easternwell Minerals Exploration and Marine Geotechnical businesses and its US downstream maintenance business, Timec.
Transfield says the write-downs are non-cash, do not affect its gearing covenant under its banking agreements and will have no impact on operations.
The impairments are expected to result in an approximate increase of 6.7 – 7.1 percentage points in the company’s balance sheet gearing ratio.
Easternwell was acquired in 2010 for $575 million however has struggled amid a slowdown in mining activity and has been under review by CEO Graeme Hunt.
Transfield services posted a net profit of $85 million in the 2012 financial year.
