Toll books $200 million impairment

Deteriorating trade conditions prompts Toll to write-down goodwill

Toll Holdings Ltd has booked a goodwill impairment charge on its global forwarding buisness, but says its full-year earnings guidance remaind unchanged.

In a statement to the Australian Securities Exchange, Toll said it will incur an impairment of goodwill associated with Toll Global Forwarding totalling approximately $200 million.

The group said the board made the decision following the completion of the company’s annual intangible asset impairment testing process.

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, it said.

"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" Toll managing director Brian Kruger said.

Toll said it still expects its operating earnings for the second half of the 2013 financial year to be higher than the same period last year, in a range of between $420 million and $430 million.