[ET Net News Agency, 9 November 2017] Swire Pacific (00019) said it expects impairment
charges to have a material adverse effect on its consolidated underlying profit
attributable to the shareholders for 2017.
The prospects for the property, beverages and trading & industrial divisions and for
Cathay Pacific Airways (00293) remain broadly the same.
Hong Kong Aircraft Engineering Company (HAECO) (00044) indicated that the 2017 trading
outlook for most of its individual businesses remained broadly the same. However, somewhat
worse results were expected at HAECO Americas in the second half of 2017 than were
expected when the interim report 2017 of HAECO was published. In addition, as required by
applicable accounting standards, a review of the carrying value of the business of HAECO
Americas has been undertaken. As a result of this review (which took into account the
prospects for the airframe maintenance business of HAECO Americas), impairment charges
currently estimated at about HK$625 million are expected to be made in 2017. Swire
Pacific's share of these estimated impairment charges amounts to HK$469 million.
The offshore market in which Swire Pacific Offshore (SPO) operates has not picked up or
rebounded. As required by applicable accounting standards, a review has been undertaken of
the carrying value of SPO's fleet. A significant influence on the value of the fleet is
the outlook for the offshore industry in which it operates. The review of the fleet's
carrying value reflects that outlook. As a result of the review, impairment charges
currently estimated at about HK$936 million are expected to be made against the
consolidated profits of the Swire Pacific for 2017. (HL)