Fletcher Building posts half-year net profit

Fletcher Building today reported a net profit of $161 million for the half year ended December, up from $111 million for the same time the previous year.

Earnings before interest and tax were up 33 per cent from the year earlier to $288 million.

Earnings per share rose 42 per cent, from 25.9 cents per share (cps) An interim dividend of 15 cps will be paid, up from 11 cps for the previous December half year.

A Dow Jones poll of analysts had tipped a net profit of $140 million and ebit of $258 million.

Chief executive Ralph Waters said the outlook for the next six months was also positive.

Despite a slowing in the residential building market in Australia and an expected slowdown in New Zealand, he said non-residential building and infrastructure markets remained strong.

"This, coupled with further margin improvements, has allowed directors to again upgrade the outlook for earnings, which they now expect to be in the range of $525-545 million before interest and taxation for the full year," he said in a statement.

In November Fletcher Building had forecast its full year earnings would be between $475m to $500 million, up from $460 million the previous year.

For the December half year Fletcher Building said all divisions improved their operating earnings for the third successive year.

Building Products' operating earnings were $121 million, up from $74 million; Distribution earned $42 million, up from $36 million; Infrastructure, a combination of the Concrete and Construction divisions, earned $77 million, compared to $62 million; and Laminates & Panels earned $56 million, up from $48 million.

Shares in Fletcher Building last traded yesterday at $6.79, having ranged between $3.95 and $6.95 over the past 12 months.

- NZPA