More of the same for Fletcher Building

The incoming chief executive at New Zealand's third-largest listed company says its strategy will stay the same after he takes over.

Jonathan Ling, 52, was chosen from a shortlist of international and internal candidates to replace the highly regarded Ralph Waters who will step down as chief executive of Fletcher Building at the end of next month.

As the Melbourne-based head of Fletcher's laminate and panel division, Mr Ling was an unexpected choice but is well regarded in the industry, The Australian newspaper reported today.

The mechanical engineer increased operating earnings at the laminates division by 8 per cent to $103 million in 2004-05 despite a 3 per cent fall in revenue to $960 million.

"I intend to continue with our present strategy to grow the company through new business and initiatives and bolt-on acquisitions," Mr Ling told The Australian.

"Over the next five years, the company also expects to spend $1.6 billion on acquisitions similar to what we spent over the past five years.

"Fletcher has a very strong balance sheet and strong cash flow. We are in a comfortable position."

But he admits the company needs a higher public profile in Australia.

"We have not done much to build up our corporate image. We have to be more active in making Fletcher a better known company in Australia," Mr Ling said.

"While 99 per cent of New Zealanders know about Fletcher, the company is not sufficiently known in Australia.

"The biggest issue is the company's liquidity on the share market. About 35 per cent of our shareholding is held by Australian institutions and they tend not to trade -- they are holders of the stock."

He described his salary package of more than $2 million a year as "attractive but not over the top".

- NZPA