Scramble to lead Fletchers

By ANNE GIBSON

A power struggle is on for the top job at one of New Zealand's biggest companies, Fletcher Building, insiders say.

Chief executive Ralph Waters is tipped to return to Australia next year, and four divisional captains are shaping up for his job.

Company insiders say divisional chiefs Mark Binns (construction and concrete), Andrew Reding (building products), David Worley (distribution) and Jonathan Ling (laminates and panels) are top contenders.

Waters is expected to give the board a paper on the succession by March or April.

The appointment will be made - probably around the middle of next year - by chairman Dr Roderick Deane and directors Hugh Fletcher, Sir Dryden Spring, Paul Baines Geoffrey McGrath, Ralph Norris and Kerrin Vautier.

Insiders say Waters' successor is most likely to come from within the company, but an external appointment could come from an Australian building products and materials manufacturer and distributor.

Waters is an Australian who became one of New Zealand's most highly rated chief executives after coming to Fletcher from metals and appliances conglomerate Email in 2001.

Waters said this year that a divisional boss could be expected to step into his shoes.

Some people believe the successor will be the boss whose division has the most clout and a proven financial record, which would make Reding the favourite.

Building products reported underlying earnings of $164 million for the June year, up from $102 million in the previous year.

It gained enormously from the purchase of the Tasman Building Products group.

Reding's responsibilities include market leader Winstone Wallboards, Fletcher Aluminium, Pacific Steel and Pacific Wire, Easysteel and Pacific Coilcoaters.

Binns' concrete division made $94 million in the year to June, up from $81 million, and his construction division made $42 million, up from $34 million.

That is a little behind Reding, but Binns does something none of the others do in heading two divisions.

He had a big success when Auckland's $130 million Grafton Gully motorway interchange was finished ahead of time and under budget.

His division also scored three of New Zealand's largest construction jobs, the PricewaterhouseCoopers Building on Auckland's waterfront, SkyCity's new hotel and convention centre on Albert St and the $200 million Auckland Hospital.

Ling's laminates and panels division made $95 million in the June year and was a star performer, nearly doubling the previous year's $54 million operating earnings.

But the board's decision to buy Laminex Group for $754 million in 2002 was a big factor in that success.

Worley is seen as more of an outside chance.

Earnings from his division rose 24 per cent in the June year to $73 million and his responsibilities include the successful PlaceMakers chain of stores.