Transurban Group : Transurban Takes A$138.1 Million Impairment Charge On US Road
06/17/2012| 07:55pm US/Eastern
By Ross Kelly
SYDNEY--Transurban Group (TCL.AU) said Monday it has written down the value of its holding in a U.S. toll road to zero and will book a related impairment charge of 138.1 million Australian dollars ($139.7 million).
The Australian company owns 75% of the Pocahontas Parkway in Virginia state. Traffic volumes were expected to grow from 2006 due to looming housing developments that never eventuated, partly due to the difficult economic environment.
"Based on revised traffic forecasts, Transurban now believes Pocahontas' future cash flows will be significantly impaired relative to the original forecasts," Chief Executive Chris Lynch said in a statement.
The company declared a distribution for the second half of the year to June 30 of 11.5 cents per security, bringing the full year payout to 29.5 cents, in line with previous guidance of at least 29 cents.
-By Ross Kelly, Dow Jones Newswires; 61-2-8272-4692; Ross.Kelly@dowjones.com