Fletcher Building shares have been placed in a trading halt at the company's request, as the construction giant considers the financial performance of one of its key business units.
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In a statement to the NZX, Fletcher Building said it was reviewing the performance of the Building + Interiors business unit, including the findings of a KPMG probe into the unit's two largest projects, and the impact this would have on its financial performance.
The company did not say which of its projects were covered by the review. Fletcher Building has had well-publicised problems with the Justice Precinct in Christchurch, which has been hit by a series of delays.
Other major projects in the division include the convention centre at SkyCity and Precinct Properties' Commercial Bay development, both in Auckland.
Shares were expected to remain in the trading halt until Wednesday, Fletcher Building's statement said, when the company would hold its annual general meeting and provide an update on its expected financial performance.
"The company is taking the necessary time to carefully consider this matter."
Investors in Fletcher Building have had a difficult year, with shares falling by more than 15 per cent over the past 12 months. Over the same period, New Zealand's benchmark NZX-50 has climbed more than 16 per cent.
In March the company cut its guidance for the 2017 financial year, which ended on June 30, by $110 million because of troubles in some of its major projects. In July it announced another profit warning as it announced chief executive Mark Adamson was leaving the company.
While Tuesday's statement did not make it clear that more bad news was coming, Grant Davies, investment advisor at Hamilton Hindin Greene, said the recent performance of the company had left negative feelings in the market.
"Coming from a once bitten, twice shy, or twice bitten, thrice shy even, then it's understandable people will be taking a fairly negative view until they get the actual numbers through," Davies said.
In July, in the wake of Fletcher Building's second profit warning, the New Zealand Shareholders Association called for all of the company's directors to put themselves up for re-election at Wednesday's AGM.
NZSA chief executive Michael Midgley said on Tuesday that it was difficult to read anything into Fletcher's statement because of the limited information, but shareholders would await Wednesday's announcement with interest.
"There'll be an awful lot of people listening with acute interest."
Fletcher Building said it expected to announce a new chief executive on Wednesday.
