Fletcher Building has reported a $46 million net full year loss, including unusual items of $360 million.
The unusual items included charges for restructuring and manufacturing capacity reduction initiatives, and the impairment of some assets, the company said today.
Net earnings after tax before unusual items for the year ended June 30 were $314m, down 33 per cent from $467m the previous year.
The result reflected a strong performance from the Steel division, with operating earnings excluding unusual items up 52 per cent on the prior year, Fletcher Building said.
All other divisions recorded lower operating earnings than the prior year due to the slowdown in building activity across most markets.
Property -related earnings from the residential business, quarry end use activities, and surplus asset sales were $18m, compared with $80m the previous year.
Total operating revenue was $7.1 billion, unchanged from a year ago.
A final dividend of 14 cents per share is to be paid, compared to 24.5cps the previous year.
Fletcher Building shares closed at $7.02 yesterday, having ranged between $5.01 and $7.88 in the past year.
Its outlook for the 2010 financial year is "subdued", with most markets "expected to record continuing low levels of activity relative to recent years."
This would be particularly noticeable in the first half, says the company, where comparison siwth the prior year will reflect the more vafourable conditions that were seen for its Formica business in Europe, for its steel business and across Australia.
"In New Zealand, the Government's commitments to accelerate spending on infrastructure should continue to provide opportunities for the construction, concrete and long steel operations."
This would, however, "only partly ameliorate the effects of lower private sector commercial construction activity and continued subdued demand in the residential market."
-NZPA / NZ HERALD STAFF
Results overview:
- Total revenues stable at $7,103 million
- Operating earnings before unusual items of $558 million, down from $768 million
- Net earnings, excluding unusual items, of $314 million, down from $467 million
- Cashflow from operations up 23 per cent to $533 million
- Interest cover at 4.0 times
- Basic earnings per share excluding unusual items were 59.7 cents
