Trade Resources Logistics & Customs Toll Group Has Announced The Impairment of Goodwill Associated with TGF Totalling $200m

Toll Group Has Announced The Impairment of Goodwill Associated with TGF Totalling $200m

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Toll Writes TGF Goodwill Down $200m, Earnings Still on Target

Toll Group has announced the impairment of goodwill associated with Toll Global Forwarding totalling approximately $200 million, while reconfirming previous Group operating earnings guidance for the year ending 30 June 2013.

Following completion of the company’s annual intangible asset impairment testing process, the board has decided to write down goodwill in its Toll Global Forwarding division. Global forwarding market conditions have further deteriorated over the past six months resulting in reduced growth and margin assumptions being used in the impairment testing process.

“While we still see global forwarding as an attractive market longer term, this impairment decision reflects the combination of current weak market conditions and uncertainty over the timing and extent of any recovery,” said Toll managing director Brian Kruger. “We are focused on the areas under our control, driving cost reductions and productivity improvements even harder. For the foreseeable future our focus will be on driving costs out of the business and we will not look at further acquisitions in the global forwarding market until we are able to demonstrate improved operating performance in this division.”

Toll has reconfirmed its operating earnings guidance for the 2013 financial year. As commented at its interim results announcement in February, Toll expects its operating earnings for the second half of the 2013 financial year to be higher than the same period last year, resulting in reported operating earnings (EBIT) for 2013 between $420 million and $430 million.

Source: http://www.tandlnews.com.au/2013/06/27/article/toll-writes-tgf-goodwill-down-200m-earnings-still-on-target/
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Toll Writes TGF Goodwill Down $200m, Earnings Still on Target
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