Announcements     |   14 August 2002

Fletcher Building Limited Annual Results for the Year to June 30 2002

Fletcher Building Limited achieved earnings of $205 million before interest, tax and unusual items in the year to 30 June 2002, confirming the substantial increase foreshadowed in the preliminary results announcement made on 11 June this year.

The result compares with $94 million in the previous year - a 118 percent improvement reflecting significant increases in the earnings of all divisions. On a consistent basis earnings before interest, tax and unusual items were up by 47 percent for Building Products, 94 percent for Concrete, 500 percent for Construction and 89 percent for Distribution. Among individual operating companies, the largest improvements were achieved by the South American operations, the upstream steel business, residential construction and the PlaceMakers distribution operation.

Net earnings were $88 million before unusual items, compared with $18 million on a comparable basis in the previous year.

The Chief Executive Officer and Managing Director, Mr Ralph Waters, said the latest results were based on improved margins through price movements, operational efficiency gains and reduced overheads, which benefited the Company throughout the year; and on strongly increasing demand for the Company's products in the second half.

Mr Waters noted that the result represented a 16.9 percent return on average equity and 23.1 percent on average funds employed. "These returns are well ahead of the Company's cost of capital. They are based on a solid improvement in internal performance, which is very pleasing and will continue to benefit the Company. Meanwhile, we expect a continuation of strong demand conditions through the first half of the current year before an easing in the second half. Our overall expectation for the current year is for another satisfactory result."

Results

  • Net Profit after tax, minority interests and unusual items of $93 million.
  • Earnings before interest, tax and unusual items of $205 million.
  • Improved operating margins and lower overheads, assisted by stronger demand.
  • Cashflow from operations of $187 million.
  • Net debt and capital notes reduced by $126 million.
  • Proceeds from divestments $54 million.
  • Interest cover increases from 3.1 times at 30 June 2001 to 5.8 times.

Dividend

  • A final dividend of 8 cents per share, with full tax credits taking the total dividend for the year to 14 cents per share.

Ralph Waters
Chief Executive Officer
Phone: +64 9 525 9169
Fax: +61 9 525 9032

Bill Roest
Chief Financial Officer
Phone: +64 9 525 9165
Fax: +64 9 525 9032