Fletcher Building half year profits fall 27pc to $172m

Fletcher Building chief executive Jonathan Ling

Fletcher Building Results
Six months ended Dec 31, 2008
Revenue
2008- $3.7bn
2007- $3.5bn
Profit
2008- $172m
2007- $235m
Dividend
2008- 24cps
2008- 24cps

Fletcher Building has reported a 27 per cent fall in half-year net profit to $172 million as its operations were exposed to a marked slowdown in residential and commercial construction markets globally.

The construction and building materials company is the third biggest company on the NZX, with a market capitalisation of $2.78 billion.

Significant volume declines were experienced across the business, particularly in New Zealand, the United States, Spain and Britain, the company said today.

It says other parts of Europe saw demand levels fall away during the period while Australia also showed signs of a major slow down.

Higher input and energy costs also had a negative impact on earnings.

As a consequence, operating earnings - before interest and tax - fell 23 per cent to $303m in the six months to the end of December.

Group sales were up 6 per cent to $3.76 billion, compared with the previous corresponding period.

The interim dividend of 24 cents per share had been maintained at the 2008 level, with imputation credits of six cents per share.


-NZPA