NZ Herald
  • Home
  • Latest news
  • Herald NOW
  • Video
  • New Zealand
  • Sport
  • World
  • Business
  • Entertainment
  • Podcasts
  • Quizzes
  • Opinion
  • Lifestyle
  • Travel
  • Viva
  • Weather

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • New Zealand
    • All New Zealand
    • Crime
    • Politics
    • Education
    • Open Justice
    • Scam Update
  • Herald NOW
  • On The Up
  • World
    • All World
    • Australia
    • Asia
    • UK
    • United States
    • Middle East
    • Europe
    • Pacific
  • Business
    • All Business
    • MarketsSharesCurrencyCommoditiesStock TakesCrypto
    • Markets with Madison
    • Media Insider
    • Business analysis
    • Personal financeKiwiSaverInterest ratesTaxInvestment
    • EconomyInflationGDPOfficial cash rateEmployment
    • Small business
    • Business reportsMood of the BoardroomProject AucklandSustainable business and financeCapital markets reportAgribusiness reportInfrastructure reportDynamic business
    • Deloitte Top 200 Awards
    • CompaniesAged CareAgribusinessAirlinesBanking and financeConstructionEnergyFreight and logisticsHealthcareManufacturingMedia and MarketingRetailTelecommunicationsTourism
  • Opinion
    • All Opinion
    • Analysis
    • Editorials
    • Business analysis
    • Premium opinion
    • Letters to the editor
  • Politics
  • Sport
    • All Sport
    • OlympicsParalympics
    • RugbySuper RugbyNPCAll BlacksBlack FernsRugby sevensSchool rugby
    • CricketBlack CapsWhite Ferns
    • Racing
    • NetballSilver Ferns
    • LeagueWarriorsNRL
    • FootballWellington PhoenixAuckland FCAll WhitesFootball FernsEnglish Premier League
    • GolfNZ Open
    • MotorsportFormula 1
    • Boxing
    • UFC
    • BasketballNBABreakersTall BlacksTall Ferns
    • Tennis
    • Cycling
    • Athletics
    • SailingAmerica's CupSailGP
    • Rowing
  • Lifestyle
    • All Lifestyle
    • Viva - Food, fashion & beauty
    • Society Insider
    • Royals
    • Sex & relationships
    • Food & drinkRecipesRecipe collectionsRestaurant reviewsRestaurant bookings
    • Health & wellbeing
    • Fashion & beauty
    • Pets & animals
    • The Selection - Shop the trendsShop fashionShop beautyShop entertainmentShop giftsShop home & living
    • Milford's Investing Place
  • Entertainment
    • All Entertainment
    • TV
    • MoviesMovie reviews
    • MusicMusic reviews
    • BooksBook reviews
    • Culture
    • ReviewsBook reviewsMovie reviewsMusic reviewsRestaurant reviews
  • Travel
    • All Travel
    • News
    • New ZealandNorthlandAucklandWellingtonCanterburyOtago / QueenstownNelson-TasmanBest NZ beaches
    • International travelAustraliaPacific IslandsEuropeUKUSAAfricaAsia
    • Rail holidays
    • Cruise holidays
    • Ski holidays
    • Luxury travel
    • Adventure travel
  • Kāhu Māori news
  • Environment
    • All Environment
    • Our Green Future
  • Talanoa Pacific news
  • Property
    • All Property
    • Property Insider
    • Interest rates tracker
    • Residential property listings
    • Commercial property listings
  • Health
  • Technology
    • All Technology
    • AI
    • Social media
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
    • Opinion
    • Audio & podcasts
  • Weather forecasts
    • All Weather forecasts
    • Kaitaia
    • Whangārei
    • Dargaville
    • Auckland
    • Thames
    • Tauranga
    • Hamilton
    • Whakatāne
    • Rotorua
    • Tokoroa
    • Te Kuiti
    • Taumaranui
    • Taupō
    • Gisborne
    • New Plymouth
    • Napier
    • Hastings
    • Dannevirke
    • Whanganui
    • Palmerston North
    • Levin
    • Paraparaumu
    • Masterton
    • Wellington
    • Motueka
    • Nelson
    • Blenheim
    • Westport
    • Reefton
    • Kaikōura
    • Greymouth
    • Hokitika
    • Christchurch
    • Ashburton
    • Timaru
    • Wānaka
    • Oamaru
    • Queenstown
    • Dunedin
    • Gore
    • Invercargill
  • Meet the journalists
  • Promotions & competitions
  • OneRoof property listings
  • Driven car news

Puzzles & Quizzes

  • Puzzles
    • All Puzzles
    • Sudoku
    • Code Cracker
    • Crosswords
    • Cryptic crossword
    • Wordsearch
  • Quizzes
    • All Quizzes
    • Morning quiz
    • Afternoon quiz
    • Sports quiz

Regions

  • Northland
    • All Northland
    • Far North
    • Kaitaia
    • Kerikeri
    • Kaikohe
    • Bay of Islands
    • Whangarei
    • Dargaville
    • Kaipara
    • Mangawhai
  • Auckland
  • Waikato
    • All Waikato
    • Hamilton
    • Coromandel & Hauraki
    • Matamata & Piako
    • Cambridge
    • Te Awamutu
    • Tokoroa & South Waikato
    • Taupō & Tūrangi
  • Bay of Plenty
    • All Bay of Plenty
    • Katikati
    • Tauranga
    • Mount Maunganui
    • Pāpāmoa
    • Te Puke
    • Whakatāne
  • Rotorua
  • Hawke's Bay
    • All Hawke's Bay
    • Napier
    • Hastings
    • Havelock North
    • Central Hawke's Bay
    • Wairoa
  • Taranaki
    • All Taranaki
    • Stratford
    • New Plymouth
    • Hāwera
  • Manawatū - Whanganui
    • All Manawatū - Whanganui
    • Whanganui
    • Palmerston North
    • Manawatū
    • Tararua
    • Horowhenua
  • Wellington
    • All Wellington
    • Kapiti
    • Wairarapa
    • Upper Hutt
    • Lower Hutt
  • Nelson & Tasman
    • All Nelson & Tasman
    • Motueka
    • Nelson
    • Tasman
  • Marlborough
  • West Coast
  • Canterbury
    • All Canterbury
    • Kaikōura
    • Christchurch
    • Ashburton
    • Timaru
  • Otago
    • All Otago
    • Oamaru
    • Dunedin
    • Balclutha
    • Alexandra
    • Queenstown
    • Wanaka
  • Southland
    • All Southland
    • Invercargill
    • Gore
    • Stewart Island
  • Gisborne

Media

  • Video
    • All Video
    • NZ news video
    • Herald NOW
    • Business news video
    • Politics news video
    • Sport video
    • World news video
    • Lifestyle video
    • Entertainment video
    • Travel video
    • Markets with Madison
    • Kea Kids news
  • Podcasts
    • All Podcasts
    • The Front Page
    • On the Tiles
    • Ask me Anything
    • The Little Things
  • Cartoons
  • Photo galleries
  • Today's Paper - E-editions
  • Photo sales
  • Classifieds

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Business / Companies / Construction

Fletcher rises on solid building rally

Anne Gibson
By Anne Gibson
Property Editor·NZ Herald·
20 Feb, 2014 04:30 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Inside the Waterview tunnel that Fletcher is building.

Inside the Waterview tunnel that Fletcher is building.

Half-year earnings up 5pc as rosy local outlook offsets tough market in Australia.

A strong New Zealand building recovery drove the country's biggest listed entity to push up half-year earnings 5 per cent and leave analysts expecting a strong second half, fulfilling its full-year guidance.

Fletcher's chief executive Mark Adamson yesterday forecast $610 million to $650 million operating earnings before interest, tax and significant items for the June 2014 year, after announcing half-year net earnings for December 2012 rose from $146 million to $154 million for the December 2013 half-year.

New Zealand earnings were strong because of the robust construction market and Fletcher's cost-cutting, Adamson said, but the focus was more on rationalisation or mergers than new acquisitions. Fletcher's Pacific Steel sale, announced this week, was one example of this, he said.

See more details of the half-year financial results here.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

Fletcher is part of the Well-Connected Alliance, creating Auckland's new Waterview Connection which Adamson said was a key part of new city infrastructure. "The Waterview Tunnel is a $1.3 billion investment by the Government to link the airport to the CBD," Adamson said from Sydney.

"Our share of that is about $400 million. The project is going exceedingly well. Alice is up to speed and on a daily basis, slightly ahead of schedule."

Waterview money was mainly flowing into Fletcher's construction division but building products was also benefiting from sales of steel and cement, although Adamson said Fletcher had to bid in a competitive tender to sell to jobs like the tunnel.

A new team appointed to Fletcher's factory house-building project had been on a global fact-finding tour. Factory-built houses were accepted in southern Germany and Sweden "but not so much in the UK - it will be something we have to initially market and sell".

Advertisement
Advertise with NZME.

Fletcher's half-year revenue fell 2 per cent; the 18c dividend per share was up 6 per cent; operating earnings at $281 million were up 7 per cent; earnings per share rose 5 per cent to 22.4c. New Zealand generated 47 per cent of revenue, Australia 40 per cent, the rest of the world 13 per cent.

Adamson said New Zealand residential consents rose 26 per cent to their highest level since 2008 but Australia's were up too, rising 16 per cent driven by more multi-unit dwellings.

Rob Mercer, Forsyth Barr's head of private wealth research, called the result disappointing, saying Australian earnings were weak, although there was good growth in New Zealand. It would be some time before Fletcher's earnings lifted, he said noting yesterday's trades around $9.50.

Carlie Eve of investor Mint Asset Management said the strength of business here continued to offset a weak performance from Australia. "Outlook comments were as expected with New Zealand continuing to grow and Australia uncertain. The guidance range was maintained, however, this will require a strong performance in the second half with enhanced activity levels in Australia required to achieve the upper end," she said.

Discover more

Business

Oz building officials under probe

28 Jan 04:30 PM
Business

Slump in orders hits building industry

07 Feb 09:47 PM
New Zealand

Chch home quake resilience researched

13 Feb 03:38 AM
World

Govt polls well despite Abbott's unpopularity

17 Feb 04:30 PM

Another analyst who asked not to be named said the result was in line with expectations. "They haven't changed guidance so it implies a reasonably strong second half on the basis that New Zealand continues to progress and the cost savings come."

Industry analyst and forecaster BIS Shrapnel said the Canterbury rebuild and Auckland's housing pick-up should drive the construction sector to a new peak by the March 2016 year. Its latest report, Building and Construction in New Zealand 2014-2019, said leaky home and school remediation and upgrades to earthquake-risk buildings would create more work.

Save

    Share this article

Latest from Construction

Construction

'A substantial breach': Builder's work under scrutiny after installing leaky gazebo

04 Jul 04:00 AM
Premium
Business|economy

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM
Property

'Special ceiling': sun and moon art adorn new Auckland train station

03 Jul 03:00 AM

There’s more to Hawai‘i than beaches and buffets – here’s how to see it differently

sponsored
Advertisement
Advertise with NZME.

Latest from Construction

'A substantial breach': Builder's work under scrutiny after installing leaky gazebo

'A substantial breach': Builder's work under scrutiny after installing leaky gazebo

04 Jul 04:00 AM

The builder argued there were defects with the gazebo design but the tribunal disagreed.

Premium
18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

18,800 people booked for NZICC; anaesthetists, ophthalmologists the latest

03 Jul 10:39 PM
'Special ceiling': sun and moon art adorn new Auckland train station

'Special ceiling': sun and moon art adorn new Auckland train station

03 Jul 03:00 AM
Premium
$66m repair bill for Auckland apartments sparks court action

$66m repair bill for Auckland apartments sparks court action

02 Jul 11:28 PM
From early mornings to easy living
sponsored

From early mornings to easy living

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • NZ Herald e-editions
  • Daily puzzles & quizzes
  • Manage your digital subscription
  • Manage your print subscription
  • Subscribe to the NZ Herald newspaper
  • Subscribe to Herald Premium
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Bay of Plenty Times
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP