Fletcher Building lifts profit to $379m

Sharemarket heavyweight Fletcher Building said today its June year net profit rose 9 per cent to $379 million.

The building products and construction company lifted its final, imputed dividend to 21 cent per share from 17c a year ago. It will pay the dividend on October 12.

The total dividend for the year rose 25 per cent to 40 cents.

Revenue rose 19 per cent to $5.52 billion and the pre-tax operating surplus rose 10 per cent to $587m while tax rose 14 per cent to $189m.

Earnings per share lifted to 81.3 cps from 77.6 cps.

The result reflected a more difficult market environment, offset by the benefits of acquisitions and ongoing productivity improvements, the company said.

Operating earnings in the distribution division fell to $75m from $81m but other divisions had improved earnings.

The infrastructure division's operating earnings lifted to $255m from $196m; building products' rose to $235m from $227m; and Laminates & Panels rose to $116m from $107m.

Outgoing chief executive Ralph Waters said the results reflected the continued benefits from the strategic diversification of earnings undertaken over recent years.

"Whilst residential markets have slowed in both New Zealand and Australia, the commercial and infrastructure markets have made a strong contribution," he said.

"This market diversification, along with our ability to secure further internal improvements, has provided the basis for earnings reliability."

Mr Waters will be replaced by Jonathan Ling on September 1.

Mr Ling was yesterday appointed to the Fletcher board, while Mr Waters will also stay on the board.

Fletcher Building shares closed yesterday on $8.49. They have risen from $7.18 a year ago and have traded between $6.80 and $9.80 in the last year.

- NZPA