Fletcher Building's chairman gave yet another mea culpa to shareholders yesterday reiterating that the board and management team took "absolute responsibility" for the company's poor performance.
"As I stated at the time this was not the result we wanted, it was not the result our shareholders wanted," Sir Ralph Norris said in a letter to investors posted to the stock exchange.
"I would like to take this opportunity to assure you that we have listened to the feedback and concerns of our shareholders, customers and our people".
Fletcher last week reported a net profit fall of 80 per cent for the 12 months to June to $94 million, after cutting earnings guidance twice during the year.
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Norris said the the company had a strong combination in its new construction chief executive Michele Kernahan and building and interiors (B+I) general manager David Kennedy.
"The issues we experienced in B+I were the result of poor project and business unit governance and ineffective project management ... with new leadership, improved project governance, core systems and processes, and a better approach to what we bid for and how we price those bids, we are confident B+I will improve in [this financial year]," he said.
Norris said it was important to realise that Fletcher Building was not simply a construction company, and the performance of B+I was "in stark contrast to the performance of the broader Fletcher Building portfolio and other businesses within the construction division".
Norris said it would take months to find a new chief executive to replace former boss Mark Adamson, who left his role abruptly after the announcement of the second earnings downgrade.
"With your continued support we are confident that Fletcher Building will emerge stronger in FY18," he said.
Fletcher's shares closed for the day up 1.2 per cent at $8.45.