Ralph Waters appointed to Fonterra board

Ralph Waters, who is stepping down as chief executive of Fletcher Building in August to return to his native Australia, was today appointed to the board of giant dairy cooperative Fonterra.

He takes up the post immediately as one of the company's four appointed directors, Fonterra said in a statement.

Mr Waters, who is quitting Fletcher Building after five years at the helm during which he transformed the company, has been the Deloitte/Management magazine Executive of the Year, New Zealand Herald Business Leader of the Year, and has received a Beacon award for excellence from the NZ Shareholders' Association.

He is renowned for his Australian optimism - striking out against the doomsday attitude adopted by fellow corporates and once saying New Zealand was the "most pessimistic" business environment he had ever encountered.

Fonterra chairman Henry van der Heyden said Mr Waters was held in high esteem by business communities on both sides of the Tasman, and would contribute considerable knowledge and expertise to Fonterra.

Since 2001, Mr Waters transformed Fletcher Building from a corporate ugly duckling into the second largest stock on the exchange, with a market capitalisation of $4.7 billion.

"Since taking the helm at Fletcher Building revenue has grown from about $3 billion in 2001 to an annualised rate of about $6 billion today, and the company's share price has increased more than four-fold," Mr van der Heyden said.

"The company's growth was achieved through a combination of improved operating performance, acquisitions and diversification - including expansion into Australia. The parallels with our current Australian strategy are obvious."

Mr Waters, 57, is also on the boards of Fletcher Building, and Fisher & Paykel Appliances.

Before joining Fletcher Building, Mr Waters was managing director of Australian publicly listed company Email.

When he took over Fletcher Building he decided the company needed to reduce its dependence on New Zealand, and embarked on a $1 billion spending spree across the Tasman, buying steel, panels and insulation businesses.

While Australia has proved a death trap for many New Zealand companies, including Telecom, with AAPT, and The Warehouse's disastrous Yellow Sheds foray, Mr Waters' 17-year stretch at Australian metals and appliance maker Email gave him the inside knowledge.

- NZPA