Transpacific's profit trashed

Following a review, the Queensland company will cut the carrying value of its New Zealand businesses by as much as $200 million and its underperforming manufacturing division by up to $45 million.

Three weeks ago, after a "please explain" notice from the stock exchange, Transpacific said it expected to post a net profit of up to $48 million for the year, after booking a $1.8 million restructuring charge and a $5.5 million asset write-down. It was still reviewing the value of non-current assets at the time.

The latest write-downs mean it is now forecasting a net loss of between $177 million and $209 million this financial year, compared with a $59 million profit last year. However, it has left unchanged earlier guidance of between $420 million and $430 million in pre-tax earnings this financial year.

The write-downs did not come as a big surprise to investors. Shares in Transpacific rose 3? to 78.5?.

The company is the country's largest waste-management company.

Transpacific again highlighted that its priority remained reducing a debt burden of about $1.5 billion, a hangover from an acquisition binge in the years leading up to the global financial crisis.