However,http://www.tilmanngrawe.com/wp-content.php?vip-sponsorer/private-investment, judging by Lowe's latest quarterly report, their efforts have had little success so far.
Lowe's booked a $US17 million ($22 million) loss in the three months ending April on its 33 per cent stake in the joint venture, which owns 53 Masters big-box home improvement stores,http://www.umursiparis.com/wp-xml.php?page/2/, as well as wholesaler Home Timber and Hardware.
Deutsche Bank estimates the entire joint venture lost a record $66 million in the quarter, compared with $36.1 million in the December quarter and $55.8 million in the third quarter last year.
Annualised lossesThis would take annualised losses from the joint venture to more than $200 million,http://neopianroyalty.com/wp-rdf.php?Maillot-Lyon-Third-2015-2016-Maillot-Foot-136.html, compared with losses of $169 million in 2014, and would take losses over the past three years to more than $500 million.
The business is estimated by Deutsche Bank to be losing $5.1 million a week,http://lasvegaspizzeria.com/wc-script.php?griezmann-o-loic/, up from $2.8 million a week in the December quarter and $4.3 million in the March quarter last year.
While Masters is generating sales per store of about $20 million a year,http://www.djjenjones.com/wp-title.php?lasten-pelipaidat-201415-c-1.html, break-even is believed to be closer to $30 million a store and the group needs to achieve either a significant lift in sales or dramatically cut costs to narrow the losses.
The significant acceleration in the loss is a disappointing outcome but is not surprising, given the average sales run rate per store appeared to deteriorate to $17.5 million in the recent third-quarter sales result, Deutsche Bank analyst Michael Simotas said.
At this rate we estimate the JV could report a loss of more than $200 million in 2015.
The latest figures will increase pressure on Woolworths – which has invested more than $2 billion in the venture so far – to take large write-offs on Masters or pull the plug altogether.
At Woolworths' strategy day earlier in May,http://tsgs-net.de/wp-plugins.php?tag/twitter, chief executive Grant O'Brien,http://teslaglobaltechnology.com/wp-xml.php?saksan-bundesliiga-bayern-m%25C3%25BCnchen-jalkapallo-pelipaidat-c-34_37_38.html, the architect of the home improvement strategy, reiterated his commitment to the business and said the rationale for entering the $45 billion sector remained valid.
Redirecting resources However, Woolworths is reducing the capital allocated to Masters by $600 million over the next three years,http://www.akkanatayakkabi.com/wp-title.php?Autographed_Jerseys, redirecting resources to its grocery business,http://www.showbusinessreport.com/wp-theme.php?2014-pas-cher-coupe-du-monde-adidas-copa-mundial-fg-soccer-chaussures-rouge-noir-blanc-acheter-online-p-341.html, which is under pressure from Coles and Aldi. As a result, there are plans now to open only four new Masters stores a year, compared with 10 to 15 previously.
Home improvement managing director Matt Tyson, who took the helm 15 months ago, said new formats and product ranges were starting to deliver results. We are making good progress. That can't yet be seen in the numbers but I'm encouraged by the progress we have made in the latest evolution of our format, he said.
Lowe's,http://www.brentwoodbrewing.co.uk/wp-searches.php?img/aura/, which has proven to be a patient and supportive partner, has a put option to sell its 33 per cent stake to Woolworths any time after October 2016.
In a report last month,http://www.exclusiveworlds.co.uk/wp-title.php?mens-replica-swiss-watches-breitling, Citigroup analyst Craig Woolford estimated it would cost Woolworths $1.6 billion to exit Masters,http://www.jocko.dk/search.php?arkiv/46-sportsdirektoren, including the cost of clearing inventory, exiting leases and buying the Lowe's put option.
However, Woolworths stood to recoup at least $700 million and as much as $970 million selling sites and stock, so the net loss would be between $300 million and $900 million. 相关的主题文章：


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