Fletcher Building Ltd Results for the Year Ended June 30 2007

Fletcher Building today announced record results for the year ended 30 June 2007.  Net profit after tax and minority interests was $484 million, compared to $379 million in the previous year.   The increase of $105 million includes the $70 million one-off taxation benefit previously advised to the market.

Operating earnings (earnings before interest and tax) were $703 million, including a net $5 million of unusual items, and an increase on the $675 million of operating earnings in the previous year, which had no unusual items.  The increase of 4 percent on the 2006 year reflected some benefits from acquisitions, ongoing productivity improvements and the unusual items, with some offset due to more difficult market conditions.

The lift in earnings has enabled the eleventh consecutive dividend increase, with a final dividend of 23 cents per share, with full New Zealand and Australian tax credits.  The total dividend for the year increased from 40 cents to 45 cents per share.  Total shareholder return for the 12 months ended 30 June 2007 was 42 percent.

Divisional results (excluding unusuals) reflected the mixed operating environment, with increases in three divisions more than offsetting the decreases in the other two.  Infrastructure’s operating earnings were $271 million (previously $255 million), Distribution's $80 million (previously $75 million) and Laminates & Panels’ $131 million (previously $116 million).  Operating earnings from Building Products were $141 million (previously $142 million), and Steel $80 million (previously $93 million).

Chief Executive Officer, Jonathan Ling said the increase in operating earnings in a softer trading environment provided further validation of the group’s strategy to build earnings reliability. “The balance of exposures between different geographical regions and market sectors is serving us well.  All our divisions have performed well in the market conditions applying to them. At the same time we have been successful in further implementing our strategic objective to internationalise the company and provide a wider range of growth options, following the recent acquisition of Formica Corporation”.

Results highlights
* Operating earnings up 4 percent to $703 million.
* Group net earnings, including unusual items, up 28 percent to $484 million.
* Group net earnings, excluding unusual items, up 5 percent to $399 million.
* Final dividend of 23 cents per share with full New Zealand and Australian tax credits for a total dividend for the year of 45 cents per share.
* Cashflow from operations was $483 million.
* Interest cover at 9.8 times.
* Basic earnings per share were 101.9 cents and 84.0 cents on a normalised basis, both up from the 81.3 cents in the previous year.

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

 

Ends