Foster's posts its first loss in 16 years

Foster's Group Ltd, Australia's biggest beer and winemaker, posted its first loss in 16 years after writing down the value of its global wine business by A$602.9 million ($517 million).

The company turned to a net loss of A$286.9 million in the six months ended June from net income of A$412.7 million a year earlier. Second-half figures were calculated by subtracting first-half earnings from the A$111.7 million full-year profit the Melbourne-based company reported yesterday. Excluding items, Foster's annual profit was A$713 million, within its forecast.

Chairman David Crawford is reviewing the wine unit and may exit a business Foster's spent A$6.8 billion and ten years creating as an Australian dollar that reached a 25-year high and increased competition cut earnings. Ian Johnston stepped into the acting chief executive officer role last month to stem market-share losses after the departure of Trevor O'Hoy, who oversaw a doubling of the brewer's wine assets in his four years in charge.