Fletcher Building today reported net earnings of $326 million for the year ended 30 June 2013, compared with $185 million in the 2012 financial year. The prior year’s result included significant items of $132 million after tax; prior year net earnings before significant items were $317 million.
Operating earnings (earnings before interest and tax) were $569 million compared with the $403 million achieved in the prior year, and prior year operating earnings before significant items of $556 million.
Cashflow from operations was $559 million, 25 per cent higher than for the prior year, driven by strong contributions from the Construction, Building Products and Distribution divisions.
A final dividend of 17.0 cents per share will be paid on 16 October 2013, with full New Zealand imputation tax credits attached, bringing the total dividend for the year to 34.0 cents per share.
Chief Executive Officer Mark Adamson said the result was driven by a sustained improvement in trading conditions in New Zealand, offset by weak construction markets in Australia.
“In New Zealand, our operating earnings before significant items increased by 38 per cent and this was driven by rising levels of new house building activity and strong momentum with the repairs and rebuilding work in Canterbury. Importantly we have been able to mitigate the impacts of the high New Zealand dollar and increased competition through our cost-out and efficiency initiatives,” Mr Adamson said.
“Conditions in Australia deteriorated early in the year and continued to be soft throughout the year. Residential and commercial markets were weak, and a slowdown in mining and resources investment had a knock-on effect across other parts of the construction industry. Consequently, operating earnings before significant items from our Australian businesses fell by 22 per cent.
“Beyond Australasia, there was a pleasing improvement in North America, but conditions across Europe continued to worsen. In South East Asia volumes were stable but activity levels declined in both China and Taiwan,” Mr Adamson said.
For further information please contact:
Group General Manager
Investor Relations & Capital Markets
Phone: + 64 9 525 9043
Mobile: + 64 27 444 0203