Queensland-based Transpacific Industries Group is blaming natural disasters in New Zealand for the bulk of write-downs between A$225 million and A$250 million.

That’s on top of A$7.5 million of write-downs and restructuring costs Australasia’s largest waste management company announced less than a month ago.

Transpacific, which took over the New Zealand-listed Waste Management in 2006, said it will write off between A$180 million and A$200 million in goodwill from its New Zealand division.

The write-off arises “solely from the need to apply a more conservative future growth rate to the New Zealand division, given the difficulties facing the New Zealand economy, both generally and as a consequence of its recent natural disasters,” the company said.

“This planned write-down does not reflect TPI New Zealand’s current business performance which continues to be strong. It remains an integral part of TPI’s total waste management service offering,” it said.

The company is a leading player in removing Christchurch’s rubble following its devastating earthquakes.

Transpacific will also write off between A$40 million and A$45 million from its manufacturing division which “relates to TPI’s announcement of its plan to restructure its manufacturing operations to stabilise performance and position the division for future growth.

“Accordingly, all goodwill relating to past acquisitions of manufacturing businesses will be written off.”

Transpacific reaffimed its previous guidance that earnings before interest, tax, depreciation and amortisation for the year ended yesterday will be between A$420 million and A$430 million, excluding significant items and mark-to-market adjustments.

That compares with the previous year’s A$424.4 million EBITDA on the same basis.

However, its bottom line annual result will be a loss between A$177 million and A$209 million compared with a A$59 million net profit the previous year.

Transpacific said it is targeting a cash inflow between A$260 million and A$300 million in the year ending June 30, 2012 with between A$160 million and A$200 million planned for capital projects.

Transpacific gained a new chief executive, Kevin Campbell, on January 27 so the write-downs could be viewed as the traditional clear-out of skeletons in the corporate cupboard new chief executives often engage in. Chief financial officer Stewart Cummins was appointed on May 23.

Transpacific shares are listed but not traded on NZX. In Australia, they closed at 81.5 cents yesterday and have fallen from A$1.50 in January, reflecting investors’ concerns about the company’s A$1.4 billion debt burden.

The company said debt reduction is its “number one priority” and it has cut net debt by A$209 million since mid-2009 with A$87 million of that occurring in the year ended yesterday.

Transpacific said it has “strong relations” with the members of its banking syndicate and none of its banking covenants relate to its market capitalisation.

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