Sharechat Logo

Fletcher half-year profit tumbles

By Paul McBeth

Thursday 12th February 2009

Text too small?
Fletcher Building, New Zealand's largest construction company, posted a 27% drop in its half-year profit as the group's operations suffered from greater exposure to the global economic slowdown.

Earnings fell to $172 million, or 34 NZ cents per share, in the six months ended Dec. 31, from $235 million, or 47 cents, a year earlier, the Auckland-based company said in a statement. Sales rose 6% to $3.76 billion, even as volumes fell, reflecting higher steel prices and ongoing construction activity in New Zealand. To combat rising costs and falling revenue, the company has laid off nearly 1100 staff worldwide.

"We have seen extremely tough trading conditions in most of our key markets," said chief executive Jonathan Ling. "In response to this we have a range of further cost reduction initiatives underway."

Fletcher has retained its 24 cent interim dividend as total shareholder returns fell 4% in the first half. The company's stock rose 1% to $5.50 yesterday, having tumbled almost 40% in the last 12 months.

Companies exposed to the building industry worldwide are suffering as consumer spending and housing demand slump. Its chief rival in Australia, Boral, yesterday posted a 44% slide in first-half profits, blaming the collapse in house construction in the US.

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Fletcher Building faces probe into plasterboard supply deals
Fletcher closes Christchurch plasterboard plant after finding asbestos
Fletcher Building names Charles Bolt as general counsel, replacing Farrell
Fletcher beats estimates with $326M FY profit as NZ revives, Australia stays flat
Fletcher executive Worley leaves as underperforming Crane unit brought in-house
Fletcher puts strategy under microscope seeking $70M annual gain, will shed jobs
Fletcher Building 1H profit edges up
Fletcher Building capital notes rollover at 5.4 percent from 8.9 percent
Fletcher Building offloads CSP Coating galvanised steel unit
Fletcher not abusing its role running Canterbury home repairs, EQC says