Fletcher Building's annual result for the full year result is due out this morning, with investors saying they are focusing on the outlook commentary.

The company, one of the largest listed here, with a market capitalisation of $5.8 billion, split in 2001 from Fletcher Challenge which had been New Zealand's largest business and multinational.

Fletcher Construction is selling its Formica business as well as its international roof tile business. It is also building Auckland's two largest projects: the $1b Commercial Bay by Precinct Properties and the $700m-plus NZ International Convention Centre by SkyCity Entertainment Group.

Shares in Fletcher were trading at NZX close yesterday around $6.90 but were at $7 two days ago. Around this time last year, they were $8/share.


In June, outgoing chairman Ralph Norris announced Bruce Hassall as his successor and four new directors: Barbara Chapman, Robert McDonald, Douglas McKay and Cathy Quinn.

One institutional investor said yesterday the earnings expectation had been downgraded recently but the real news would be in the forecasts for the June 30, 2019 year.

"It's what they'll be saying about the outlook that's important," the Auckland funds manager said.

Shane Solly of Harbour Asset Management, said earnings' expectations had lowered just in the last few days.

"In the lead-up to company results, a couple of stockbroking analysts have trimmed their 2018 and 2019 earnings forecasts slightly.

"Key focus for me will be progress on getting the business back to basics in areas of business where Fletcher is well-positioned to grow. Interesting infrastructure comments the other day from company. We believe there is a significant pipeline of infrastructure works in New Zealand. A key is Fletcher and the project owners getting the economic model right," Solly said.