would've fallen 17.2% today Australia's Multiplex: FY05 Guidance...

would've fallen 17.2% today Australia's Multiplex: FY05 Guidance Cut To A$170M -2- 30/05/05 17:42:00

Multiplex share trading was halted Friday pending the completion of an
internal review of its major construction projects after it emerged that losses
from the flagship A$1.2 billion Wembley Stadium could be "significantly wider"
than the A$50 million indemnity pledged by founder John Roberts and his family
three months ago.
Excluding this indemnity, which is now likely to be fully utilized, losses
from the Wembley project will total A$109 million, the company said in its
statement Monday.
In February, Multiplex recognized there would a material increase in project
costs and wrote back previously booked profits so that Wembley was only breaking
even in the company's accounts.
Multiplex Chief Executive Andrew Roberts said the Wembley result is
"unacceptable."
Since February, the company has implemented a range of measures to isolate and
address problems at Wembley including a peer review that has just completed, the
appointment of new senior management and new risk management procedures, he
said.
"However this latest result is extremely disappointing and we acknowledge it
will take some time to earn back investors' confidence.
"Despite the disappointing revision to our earnings forecasts, all other
operating divisions within the company and Multiplex Property Trust continue to
perform at or above expectations."
In a briefing, Roberts said he is confident the stadium will be completed in
time for the 2006 FA Cup.
In a note to clients issued earlier Monday, investment bank UBS said there is
substantial risk that earnings estimates will be cut.
Downgrading Multiplex to neutral from buy, UBS said the prospect of bigger
losses from Wembley was "extremely disappointing and...further tests confidence
in management".
John Roberts resigned as chairman last Friday and chief operating officer Noel
Henderson resigned from the board.
Multiplex shares are expected to fall sharply when the trading halt is lifted.

If the stock had been trading Monday it would have fallen at least 17.2%,
according to automated matching of sell and buy orders in the pipeline.
"We are expecting heavy selling" when it resumes trading, said Macquarie
Equities broker Lucinda Chan.
Multiplex said it will pay a distribution of 14 cents for each security in the
second half of its financial year ending June 30.
Net profit for the next financial year is forecast in a range of A$200 million
to A$215 million.