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Metro Performance Glass Launches Strategic Review

15 Oct 2017 9:19 pm
   By David Winning 

SYDNEY--Metro Performance Glass Ltd. (MPG.NZ), New Zealand's biggest glass processor, has launched a six-month review of its strategy after conceding that assumptions underpinning its business outlook may no longer be accurate.

Chairman Sir John Goulter said the review would look at each of the company's units "as a consequence of significant variations in the timing of both residential and commercial work put in place in New Zealand between Metro Glass's assumptions and the actual market."

Shares in Metro Performance Glass have roughly halved over the past 12 months, reflecting downgrades to earnings and revenue. In February, the company said its sales had been held back by a faster-than-expected slowdown in the Canterbury residential market and a drop in activity in Wellington following an earthquake last year.

On Monday, Metro Performance Glass said it continued to expect both net profit and earnings before interest, tax, depreciation and amortization for the six months through September to be in line with the corresponding period a year ago. That mirrored guidance provided at its annual meeting of shareholders in August.

The company also said it still anticipates an improved financial result for the 2018 fiscal year when compared to the prior 12 months.

However, Metro Performance Glass said it now expects to spend less than previously forecast in the year through March 2018. Revised guidance for annual capital expenditure of around 20 million New Zealand dollars (US$14.3 million) compares with prior guidance for up to NZ$25 million.

"Despite the significant capital investment this year, Metro Glass expects to maintain both net debt and dividend payments to shareholders in FY18 in line with FY17," the company said in a regulatory filing.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

October 15, 2017 17:19 ET (21:19 GMT)

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