Fletcher Building today announced record results for the year ended 30 June 2006. Net profit after tax and minority interests was $379 million, compared to $347 million in the previous year. There were no unusual items in either year’s result.
Fletcher Building achieved operating earnings – that is earnings before interest and tax – of $675 million, up 10 percent on the 2005 year. The result reflected a more difficult market environment, offset by the benefits of acquisitions and ongoing productivity improvements.
The lift in earnings enabled a further increase in dividends – from a total 32 cents per share in the previous year to 40 cents per share, with a final dividend of 21 cents per share. Total shareholder return for the 12 months ended 30 June 2006 was 40 percent.
A reduction in operating earnings from Distribution to $75 million (previously $81 million) was more than offset by increases in the other divisions. Infrastructure’s operating earnings were $255 million (previously $196 million), Building Products’ $235 million (previously $227 million) and Laminates & Panels’ $116 million (previously $107 million).
The Chief Executive Officer, Mr Ralph Waters, said the results reflected continued benefits from the strategic diversification of earnings undertaken over recent years. “Whilst residential markets have slowed in both New Zealand and Australia, the commercial and infrastructure markets have made a strong contribution,” Mr Waters said. “This market diversification, along with our ability to secure further internal improvements, has provided the basis for earnings reliability.”
Results highlights
- Operating earnings up 10 percent to $675 million.
- Group net earnings up 9 percent to $379 million.
- Total dividend for the year of 40 cents per share.
- Cashflow from operations up from $479 million to $560 million.
- Interest cover at 9.3 times.
- Basic earnings per share up from 77.6 cents to 81.3 cents.