Fletcher Building Limited Results for the Year to June 30 2008

Fletcher Building today announced its results for the year ended 30 June 2008.  Net profit after tax and minority interests excluding unusuals was $467 million, compared with $399 million in the previous year.  

Operating earnings (earnings before interest and tax) were $768 million, a 10.0 percent increase on the $698 million of operating earnings pre unusuals in the previous year.

There were no after tax unusuals in the current year, compared with $85 million in the previous year.

A final dividend of 24.5 cents per share will be paid on 16 October 2008, with New Zealand and Australian tax credits attached to the maximum permitted amount.  The total dividend for the year increased from 45 cents to 48.5 cents per share and is the thirteenth consecutive dividend increase.

Divisional results included increases in operating earnings by Building Products, Steel, Laminates & Panels and Infrastructure, more than offsetting the decrease in Distribution.  Formica contributed to the full year result of Laminates & Panels for the first time, although the result was well below expectations.  Property related earnings, being principally the residential business, quarry end use activities, and surplus asset sales contributed $80 million to the Infrastructure trading result, up from $49 million in the prior year.

Chief Executive Officer, Jonathan Ling said “we have achieved record operating earnings this year notwithstanding the increasingly difficult markets.  The performance of our New Zealand and Australian businesses, and Formica’s operations in Asia and Europe, has been very pleasing.  While the delay in capturing the operational improvements identified prior to Formica’s acquisition has been disappointing, we are still confident that we will achieve a significantly improved operating performance in Formica’s USA operations”.

Results highlights

    Operating earnings pre unusuals up 10 percent to a record $768 million.
    Net earnings, excluding unusual items, up 17 percent to $467 million.
    Final dividend of 24.5 cents per share with New Zealand and Australian tax credits giving a total dividend for the year of 48.5 cents per share.
    Cashflow from operations was $434 million.
    Interest cover at 7.1 times.
    Basic earnings per share were 93.2 cents up from 84.0 cents, excluding unusuals in the previous year.

Contacts:

Jonathan Ling                                              
Chief Executive Officer                                 
Ph: +64 9 525 9169        

Bill Roest
Chief Financial Officer
Ph: +64 9 525 9165