Aurizon Holdings Limited Reaffirms Earnings Guidance for the Year of 2017; to Report Asset Impairments for the First Half of 2017
The board has recognized asset impairments of $162 million in respect of the Intermodal business due to trading performance during the first half being lower than expectations. Following the impairment, the residual carrying value of the assets of the Intermodal business is $177 million. FMT was an investment that commenced in 2014 to standardize 18 separate legacy systems for logistics planning, scheduling, ordering and billing to a single platform. Following a review, it has been decided to terminate this project and as a result an impairment charge of $64 million will be recorded in the first half of 2017 accounts. An amount of $27 million of the total project investment of $91 million remains capitalised on the balance sheet in relation to software and licences, which are currently in use.