Sharechat Logo

FIRST CUT: Fletcher 1H profit rises 2%

Wednesday 22nd February 2017

Text too small?

Fletcher Building posted a 2 percent gain in first-half profit, missing some estimates, after taking a charge against a construction project and costs to close sites.

Net profit was $176 million in the six months ended Dec. 31, from $172 million a year earlier, the Auckland-based company said in a statement. Sales rose 4 percent to $4.61 billion. Excluding one-time items, profit rose to $187 million from $159 million and both sales and normalised profit were below the forecasts from brokerage Forsyth Barr.

Fletcher's building products division, its largest business, had a 12 percent decline in revenue while operating earnings dropped 20 percent including $15 million of costs for the closure of Rocla Products and Fletcher Insulation sites, and reflecting lower sales after the divestment of Pacific Steel and Rocla. Operating earnings from construction fell 33 percent, which it said reflected "losses on a major project".

Operating earnings from distribution and international activities both rose more than 30 percent and the company reiterated its guidance for full-year earnings before interest, tax and significant items in a range of $720 million to $760 million. It declared a first-half dividend of 20 cents a share, fully imputed, up 5 percent from a year earlier. Forsyth Barr was expecting a dividend of 21 cents.

Fletcher's shares last traded at $10.21 and have surged 54 percent in the past 12 months, outpacing the S&P/NZX 50 Index's 16 percent gain.

Bond Offer: Infratil Ltd, 7.2 year & 10.2 year unsecured unsubordinated bond

  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
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:

NZ dollar eases as market eyes pending GDP data
Evolve shareholders demand answers
Strong tourism, low rates keep lid on NZ current account deficit
Refining NZ margins jump to 18-month high
Goodman opts for underwritten $150m placement to raise capital
Kathmandu shares rise 9.3% on strong FY result, solid US performance
FMA seeks greater powers from the government
Goodman opts for underwritten $150m placement to raise capital
NZ dollar opens higher as dairy prices lift, oil eases
Napster's Sean Parker yet to seek OIO approval for Weta Digital stake

IRG See IRG research reports