NZ-BASED FLETCHER BUILDING SEEKS TO RAISE UP TO US$288 MLN.

SYDNEY, April 1 Asia Pulse - Shares in New Zealand-based builder Fletcher Building Ltd (ASX:FBU) have been placed in a trading halt, while the company conducts a capital raising seeking NZ$465 million-NZ$505 million (US$265.32-288.15 million).

At the same time, Fletcher forecast a potential impairment "of certain assets of up to NZ$150 million" by balance date, June 30.

Fletcher said in a statement that it also would write off a US tax benefit of NZ$50 million, and that it would restructure its business and reduce manufacturing capacity, at a cost of up to NZ$145 million.

In a market update, the company confirmed earlier guidance at its first half announcement that net earnings before unusual items for the full year were expected to be "towards the lower end of the analysts' consensus range at that time of NZ$289 million to NZ$336 million, assuming there is no significant further deterioration in trading conditions from those experienced in the year-to-date".

But Fletcher also said that "operating conditions in key markets have remained challenging and in some cases have deteriorated further" since the first half announcement, in mid-February.

"In New Zealand, new residential dwelling consents have been running at approximately 1,000 per month, thereby tracking below the annual rate of 15,000 consents in the Company's business plan base case," Fletcher said in a statement.

"Commercial construction activity has continued to decline.