Transfield To Sell USM For US$255 Million To Emcor; Reiterates Guidance
19 May 2011 - 09:24AM
Dow Jones News
Transfield Services Ltd. (TSE.AU) said Thursday it has agreed to
sell its North American facilities maintenance business USM to
Emcor Group Inc. (EME) for US$255 million.
The company also reiterated a target of mid-single-digit
percentage growth for fiscal 2011 net profit before items. The
expected contribution to earnings before interest, taxes,
depreciation and amortization from the USM sale is about A$24
million.
Transfield said in a statement the expected impact of the sale
in the year to June 30 will include a non-cash underlying net loss
on the sale of discontinued operations of A$16 million, including
transaction costs.
"Further to this, Australian Accounting Standards require
accumulated currency translation losses of A$45 million to A$50
million relating to USM to be reclassified to retained earnings,"
Transfield said. The accounting losses will be included in fiscal
2011 net profit but won't affect underlying earnings, it said.
Transfield expects to continue to pay dividends within the
previously disclosed target range of 50%-70% of operational net
profit.
-By Sydney bureau; 61-2-8272-4680; djnews.sydney@dowjones.com
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