WELLINGTON, Sept 25 (Reuters) - Fletcher Building Ltd , New Zealand’s biggest construction company, said on Monday it had hired global auditing firm KPMG to conduct a review of some of its largest projects.
The company reported a bigger-than-expected 80 percent drop in full-year profits in August, hit by losses in its building business as delays and higher labour and material costs hampered two major projects in Christchurch and Auckland.
New Zealand’s building boom is slowing down and costly delays at major projects have forced Fletcher to cut its annual operating earnings forecasts twice, prompting former CEO Mark Adamson to step down in July.
The company said it routinely used a variety of external consultants across a range of disciplines within its business, including the construction division. (Reporting by Ana Nicolaci da Costa. Editing by Jane Merriman)