Wednesday, 17 August 2022
Meet the JournalistsPremiumAucklandWellingtonCanterbury/South Island
CrimePoliticsHealthEducationEnvironment and ClimateNZ Herald FocusData journalismKāhu, Māori ContentPropertyWeather
Small BusinessOpinionPersonal FinanceEconomyBusiness TravelCapital Markets
Politics
Premium SportRugbyCommonwealth GamesCricketRacingNetballBoxingLeagueFootballSuper RugbyAthleticsBasketballMotorsportTennisCyclingGolfAmerican SportsHockeyUFC
NZH Local FocusThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay of Plenty TimesHawke's Bay TodayRotorua Daily PostWhanganui ChronicleStratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu Courier
Covid-19
Te Rito
Te Rito
OneRoof PropertyCommercial Property
Open JusticeVideoPodcastsTechnologyWorldOpinion
SpyTVMoviesBooksMusicCultureSideswipeCompetitions
Fashion & BeautyFood & DrinkRoyalsRelationshipsWellbeingPets & AnimalsVivaCanvasEat WellCompetitionsRestaurants & Menus
New Zealand TravelAustralia TravelInternational Travel
Our Green FutureRuralOneRoof Property
Career AdviceCorporate News
Driven MotoringPhotos
SudokuCodecrackerCrosswordsWordsearchDaily quizzes
Classifieds
KaitaiaWhangareiDargavilleAucklandThamesTaurangaHamiltonWhakataneRotoruaTokoroaTe KuitiTaumarunuiTaupoGisborneNew PlymouthNapierHastingsDannevirkeWhanganuiPalmerston NorthLevinParaparaumuMastertonWellingtonMotuekaNelsonBlenheimWestportReeftonKaikouraGreymouthHokitikaChristchurchAshburtonTimaruWanakaOamaruQueenstownDunedinGoreInvercargill
NZ HeraldThe Northern AdvocateThe Northland AgeThe AucklanderWaikato HeraldBay Of Plenty TimesRotorua Daily PostHawke's Bay TodayWhanganui ChronicleThe Stratford PressManawatu GuardianKapiti NewsHorowhenua ChronicleTe Awamutu CourierVivaEat WellOneRoofDriven MotoringThe CountryPhoto SalesNZ Herald InsightsWatchMeGrabOneiHeart RadioRestaurant Hub

Advertisement

Advertise with NZME.
Business

Fletcher Building aims to boost housing

16 Oct, 2013 04:30 PM4 minutes to read
Ralph Waters. Photo / Natalie Slade

Ralph Waters. Photo / Natalie Slade

Anne Gibson
By
Anne Gibson

Property Editor

VIEW PROFILE

Fletcher Building is weighing into Auckland's housing crisis with plans to step up its game and increase the supply of new places.

In forecasting an operating earnings rise which might be up to $81 million ahead of last year, chairman Ralph Waters said chief executive Mark Adamson wanted to lift the company's house-building rate from around 300 a year.

"His aim is to have land in place for 1000 new homes a year," Waters said, referring to Fletcher's acquisition of the Manukau Golf Course.

"This is not the only golf course we've been in discussion with in Auckland and we hope there will be others. The golf courses don't disappear but move to areas where there's less demand for housing," Waters told about 500 shareholders.

Advertisement

Advertise with NZME.

Adamson said the rise of the new Saltus apartment block at Fletcher's Stonefields in Auckland was a hallmark.

"We have historically confined our home building activities to stand-alone and low-rise developments and the Saltus apartment complex was our first multi-level apartment development. We have several more apartment buildings planned for Stonefields which will complement our other housing offerings, in what has been a very successful development for the company," Adamson said.

"We see further opportunity to expand in the housing market here in Auckland through increased medium and high-density housing developments. Land now accounts for up to 43 per cent of the total cost of a new house. Bringing new housing solutions to market, thereby increasing the supply of housing stock, will be critical in ensuring that the growing population can be accommodated," Adamson said.

Waters forecast earnings before interest and tax (ebit) for the June 2014 year of between $610 million and $650 million, saying there has been no improvement in Australia and weak trading was being compounded by a strong kiwi.

In the year to June 30 Fletcher made ebit earnings of $569 million, while in the year to June 30, 2012 it made $403 million. He said there had been no noticeable improvement in volumes in Australia since the new financial year began and forecast was for relatively flat conditions.

The strong kiwi against the Australian dollar is likely to slice about $15 million from earnings in the current year, he said. There is a risk the local currency will appreciate further.

Related articles

Business

NZX warned prices being led by ASX with more dual-lists

13 Oct 04:30 PM
Business

Fletcher's Ralph Waters retiring early

15 Oct 09:55 PM
Business

Govt slammed over China trip 'help'

16 Oct 04:30 PM
New Zealand

Cutbacks after veterans' home sold spark inquiry

17 Oct 04:30 PM

Overall, trading in the first three months of the year has been similar to the 2013 year.

In its largest market of New Zealand, further increases in construction activity are expected and a strong increase in housing consents in the second half of the previous financial year "should underpin activity levels in the first half of the current year, and the repair of houses and infrastructure in Christchurch will continue to boost activity levels", Waters said.

Advertisement

Advertise with NZME.

Most parts of Europe remained difficult, especially Spain, and the region was expected to break even in the current year. North American activity would benefit from new home building while commercial construction remained flat.

Southeast Asia would "continue to grow satisfactorily" while northern Asia and China "may be more subdued".

Fletcher's shares closed up 13c at $9.53, having gained about 12 per cent this year.

- Additional reporting BusinessDesk

Ralph Waters to retire early

Fletcher Building chairman Ralph Waters has announced his early retirement towards the end of next year from the NZX-listed company's board - three months earlier than his due date in March 2015.

Advertisement

Advertise with NZME.

Waters is chairman of one of Australia's biggest corporates, Woolworths, as well as chairman of Fletcher - New Zealand's biggest listed company. He is on the board of Australia's largest national rail freight and ports operator Asciano and is a trustee for the private charitable foundation of the Australian industrialist, 92-year-old Sir William Tyree.

Waters has also been on the Fonterra and Westpac New Zealand boards.

Next year's Fletcher annual meeting will be his last.

"The annual meeting is a good time to stand down and I will be finishing at the annual meeting next year," Waters said after yesterday's AGM in Eden Park's South Stand.

Cricket Australia and New Zealand Cricket, joint hosts of the ICC Cricket World Cup 2015, have appointed him chairman of the local organising committee and he said yesterday that was a prominent role.

"I will have been here for 13 years," he said of the Fletcher role, "and there's no need to extract every last second out of my tenure. Secondly, it will also free up time for the cup."

Advertisement

Advertise with NZME.

Advertisement

Advertise with NZME.

Latest from Business

Sport|Rugby

'Unanimous': Foster keeps job, Schmidt elevated to attack coach

17 Aug 03:10 AM
Business

Airbnb is rolling out new screening tools to stop parties

17 Aug 06:47 AM
Premium
Business

Why mortgage rates may have peaked despite big OCR hike

17 Aug 05:42 AM
Premium
Business

Banks stick with their NZ milk price forecasts

17 Aug 05:40 AM
Premium
Business

Māori tokenism in ads: Is it causing more harm than good?

17 Aug 05:38 AM

Most Popular

Premium
NZ's highest paid CEO: Fletcher boss takes home $6.58m
Business

NZ's highest paid CEO: Fletcher boss takes home $6.58m

17 Aug 05:30 AM
Adrian Orr fronts media after RBNZ hikes OCR by 50bp
Business

Adrian Orr fronts media after RBNZ hikes OCR by 50bp

17 Aug 02:00 AM
'Incredibly unsettling': Police update on suitcase homicide mystery
New Zealand|Crime

'Incredibly unsettling': Police update on suitcase homicide mystery

17 Aug 01:32 AM

Advertisement

Advertise with NZME.
About NZMEHelp & SupportContact UsSubscribe to NZ HeraldHouse Rules
Manage Your Print SubscriptionNZ Herald E-EditionAdvertise with NZMEBook Your AdPrivacy Policy
Terms of UseCompetition Terms & ConditionsSubscriptions Terms & Conditions
© Copyright 2022 NZME Publishing Limited
TOP