Fletcher Building posts 10 per cent rise

Building products and construction company Fletcher Building today reported a 10 per cent rise in its half year profit for the six months ended December.

The company posted a net profit of $190 million for the period, from $172 million for the same time the previous year.

Earnings before interest and tax were up 12 per cent at $335 million.

The company announced a 27 per cent increase in its interim dividend, to 19 cents per share.

Earnings per share for the period were up 4 per cent at 40.9 cents per share.

Chief executive officer, Ralph Waters said the company was now forecasting its operating earnings for the full year to June would be in the range of $630-650 million.

"This increase on last year's earnings is very pleasing given the current state of the building materials markets," Mr Waters said.

Mr Waters acknowledged there was softer demand in the building sector, but said operational improvements and earnings from Fletcher's purchase of Australian building products firm Amatek have led to the higher earnings.

Divisional earnings were mixed, with Building Products' operational earnings falling to $115 million (from $125 million), Distribution falling to $36 million (from $42 million), Infrastructure up at $125 million ($77 million), and Laminates Panels rising to $62 million ($58 million).

Shares in Fletcher Building last traded yesterday at $7.72, having ranged between $5.76 and $8.42 over the past 12 months.

- NZPA