Fletcher Building today provided an update on measures it is taking to respond to the COVID-19 virus.
Fletcher Building Chief Executive Ross Taylor said: “Health and safety is our first priority and over the past two months we have put in place measures to protect the well-being of our people. We have also taken a wide range of actions to ensure the continuity of our operations so that we can provide the best possible service to our customers. To this point, we have had a strong response from both our local and international suppliers, and there has been no material disruption to our manufacturing, distribution, residential and construction operations. Since the FY20 Half Year Results announcement in mid-February, our businesses have continued to trade largely in line with expectations.
“However, it is now clear that COVID-19 and the significant escalation of government protection measures in New Zealand and Australia will have a material impact on our operations and our FY20 financial results. For this reason, the Board has decided to withdraw Fletcher Building’s FY20 EBIT guidance.”
The Board is focused on preserving liquidity through what is likely to be a challenging trading period for an unknown duration. In addition to a range of other cash protection measures to be taken across all the Group’s businesses, the Board has decided to cancel the FY20 interim dividend which was due to have been paid on 9 April 2020, and to suspend the on-market share buyback programme. The Company will also pause the divestment process for the Rocla business that was announced at the Group’s Half Year Results in February.
Authorised by: Andrew Clarke, Company Secretary