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FIRST CUT: Fletcher Building's FY operating earnings within guidance

Wednesday 22nd August 2018

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Fletcher Building reported a full year loss, reflecting losses at its Building + Interiors unit, but said that its operating earnings excluding those losses were within guidance.

The Auckland-based company said in a statement its net earnings loss was $190 million for the 12 months to June 30 compared to a profit of $94 million in the prior year. However, operating earnings before significant items - excluding Building + Interiors - were $710 million, within the $680 million to $720 million range it forecast. The B+I losses were maintained at $660 million, as forecast in February when it announced further provisions of $486 million.  

The losses in the B+I unit, which includes some of New Zealand's most complex and expensive vertical construction projects on its books, had been well signaled to the market and in July the company restructured into seven divisions from its previous five, including a standalone Australia unit. 

"We are pleased to finish the financial year meeting earnings guidance and containing B+I losses within the provisions we announced to the market in February this year," said chief executive Ross Taylor. 

Revenues lifted 1 percent on the year to $9.47 billion, driven by a solid sales performance across its core businesses in Australia and New Zealand, offset by lower construction revenue. 

No final dividend was declared but the company expects to be in a position to resume dividends in the current financial year, said Taylor. 

The stock last traded at $6.90 and is down 13.7 percent over the past 12 months. 

(BusinessDesk)

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