Wesfarmers profit to be hit by $2 billion in Target, coal write-downs

Wesfarmers managing director Richard Goyder has conceded the conglomerate's reputation has been dented by more than $2 billion in write-downs and losses of $350 million in two key divisions, Target and coal.

Mr Goyder revealed on Wednesday that Target would plunge $50 million into the red this year – losing $103 million in the June half – after slashing prices on about $200 million in excess stock. He also confirmed that Wesfarmers' coal operations would likely lose about $300 million this year as export coal prices plunged.