Building materials and construction group Fletcher Building's net profit before unusual items fell 4% to $301 million in the 2009-10 year, the company says. The result compared with $314 million recorded in the previous year. The country's largest l
Building materials and construction group Fletcher Building’s net profit before unusual items fell 4% to $301 million in the 2009-10 year, the company says.
The result compared with $314 million recorded in the previous year.
The country's largest listed company Fletcher Building said in June that an unusual item of $29 million was incurred due to tax changes announced in the May budget. This resulted in net earnings for the year of $272 million.
The company said a number of its businesses reported improved performances but the steel division had lower operating earnings following a record earnings result in the previous year.
Reduced concrete product volumes adversely affected the infrastructure division’s earnings, it said.
Final dividend improves
The result was in line with market expectations.
Fletcher Building raised its final dividend to 15c a share compared with 14c last year. The total dividend for the year dropped to 29c from 38c.
The company said it experienced improved performances within a number of business units, which came as a result of cost cutting, and improved New Zealand and Australian residential housing markets.
Operating earnings in the laminates and panels division almost doubled to $141 million.
“While the underlying earnings figure is in line with last year’s, the composition is quite different, reflecting the significant changes we have seen in our markets in the past year,” chief executive Jonathan Ling said in a statement.
Mixed residential markets
Residential markets in Australia and New Zealand staged a modest recovery but they remained weak in Europe and North America.
“Additionally, while government funded infrastructure spending in New Zealand and Australia has continued to underpin results, commercial construction activity in most of our key markets remained subdued,” Mr Ling said.
He considered the result to be a strong one in the context of mixed market conditions.
Total revenues dropped to $6.8 billion compared with $7.1 billion in 2008-9.
Operating earnings before unusual items were $521 million, compared with $558 million in 2009.
Fletcher Building shares last traded on Tuesday at $7.18.
