US retailer Lowe’s has set the scene for legal action against Woolworths after writing down the value of its 33 per cent stake in the companies’ home improvement joint venture by $US530 million ($737 million).
Lowe’s booked a $US530 million charge against its investment in the Masters and Home Timber and Hardware businesses overnight, sending net profits plunging to $US11 million from $US450 million.
Lowe’s net investment in the home improvement is about $US930 million ($A1.33 billion at current exchange rates), so the write-down represents more than 56 per cent of the book value of its investment.
Woolworths could book impairment charges of at least $1.3 billion if it writes down its 66 per cent stake by a similar margin. Sydney Morning Herald – Read more…
Lowe’s booked a $US530 million charge against its investment in the Masters and Home Timber and Hardware businesses overnight, sending net profits plunging to $US11 million from $US450 million.
Lowe’s net investment in the home improvement is about $US930 million ($A1.33 billion at current exchange rates), so the write-down represents more than 56 per cent of the book value of its investment.
Woolworths could book impairment charges of at least $1.3 billion if it writes down its 66 per cent stake by a similar margin. Sydney Morning Herald – Read more…