Announcements     |   12 August 2009

Fletcher Building Limited 2009 Annual Results

Fletcher Building today announced its results for the year ended 30 June 2009. The group recorded net earnings after tax before unusual items of $314 million compared with $467 million in the previous year.

Auckland, – Fletcher Building today announced its results for the year ended 30 June 2009.  The group recorded net earnings after tax before unusual items of $314 million compared with $467 million in the previous year.

Operating earnings (earnings before interest, tax and unusual items) were $558 million compared with $768 million in the previous year.  Cashflow from operations was up 23 percent to $533 million compared with $434 million in 2008.

As foreshadowed in April 2009, unusual items of $360 million were incurred, giving rise to a net loss after tax and minority interests and unusual items of $46 million. Unusual items comprised charges for restructuring and manufacturing capacity reduction initiatives, and the impairment of certain assets.

A final dividend of 14.0 cents per share will be paid on 15 October 2009, with partial New Zealand tax credits attached.  The total dividend for the year is 38.0 cents per share.

The result reflected a strong performance from the Steel division, with operating earnings excluding unusual items up 52 percent on the prior year, while all other divisions recorded lower operating earnings than the prior year due to the slowdown in building activity across most markets. Property related earnings from the residential business, quarry end use activities, and surplus asset sales were $18 million compared with $80 million in the prior year.

Chief Executive Officer, Jonathan Ling said “this year has been about maximising our cash earnings during the recession, and restructuring the business so that we are strongly positioned for the economic recovery, when it comes.”

”Throughout the past year we have seen a marked deterioration in all of the major markets in which Fletcher Building operates. Given this, and our cautious outlook for building activity worldwide, we have undertaken a range of initiatives to appropriately scale our manufacturing capacity and restructured our operations to optimise earnings in the light of lower volumes. Together with the measures we undertook earlier this year to strengthen the balance sheet, and our strong operating cashflows, these initiatives have ensured that we are well positioned for the current economic conditions and to benefit as volumes grow over time”, Mr Ling said.

Results overview

  • Total revenues stable at $7,103 million
  • Operating earnings before unusual items of $558 million, down from $768 million
  • Net earnings, excluding unusual items, of $314 million, down from $467 million
  • Cashflow from operations up 23 percent to $533 million
  • Final dividend of 14.0 cents per share with partial New Zealand tax credits giving a total dividend for the year of 38.0 cents per share
  • Interest cover at 4.0 times
  • Basic earnings per share excluding unusual items were 59.7 cents

For further information please contact:

Philip King
General Manager
Investor Relations
Phone:   + 64 9 525 9043
Mobile: + 64 27 444 0203