Fletcher Building today reported net earnings before unusual items of $301 million for the year ended 30 June 2010. The result compares with $314 million recorded in the previous year.
Operating earnings (earnings before interest and tax) before unusual items were $521 million compared with $558 million in the previous year. Cashflow from operations was $522 million compared with $533 million in 2009.
As announced in June 2010, an unusual item of $29 million was incurred due to a significant change to New Zealand taxation law, resulting in net earnings for the year of $272 million.
A final dividend of 15.0 cents per share will be paid on 20 October 2010, with partial New Zealand tax credits attached, bringing the total dividend for the year to 29.0 cents per share.
The result was driven by improved performances within a number of business units as a result of the cost reduction initiatives implemented during the current and previous years, and improved trading conditions in the New Zealand and Australian residential housing markets. Operating earnings in the Laminates & Panels division almost doubled to $141 million, however, the Steel division had lower operating earnings following a record earnings result in the prior year, and reduced concrete product volumes adversely impacted the Infrastructure division’s earnings.
Chief Executive Officer Jonathan Ling said the result showed the benefit of the Fletcher Building group’s diversity.
“While the underlying earnings figure is in line with last year’s, the composition is quite different, reflecting the significant changes we have seen in our markets in the past year. Residential markets in Australia and New Zealand have shown modest recovery, but they remained weak in Europe and North America.
“Additionally, while government funded infrastructure spending in New Zealand and Australia has continued to underpin results, commercial construction activity in most of our key markets remained subdued. The result is therefore a strong one in the context of these mixed market conditions”, Mr Ling said.
“What is especially pleasing is that we have seen excellent outcomes from the cost reduction initiatives we undertook through 2009 and 2010. This has ensured that we are appropriately scaled in terms of our manufacturing capacity to optimise earnings with lower activity levels. Coupled with our strong balance sheet, we are well positioned for the future and to pursue further growth opportunities”, Mr Ling said.
Results overview
- Total revenues of $6,799 million compared with $7,103 million in 2009
- Operating earnings before unusual items of $521 million, compared with $558 million in 2009
- Net earnings, excluding unusual items, of $301 million, compared with $314 million in 2009
- Cashflow from operations of $522 million
- Final dividend of 15.0 cents per share with partial New Zealand tax credits giving a total dividend for the year of 29.0 cents per share
- Interest cover at 4.9 times
- Basic earnings per share excluding unusual items were 49.7 cents
- The dividend reinvestment plan will not be operative for the final dividend payment
For further information please contact:
Philip King
General Manager
Investor Relations
Phone: + 64 9 525 9043
Mobile: + 64 27 444 0203
ENDS