Fletcher profit surges on strong NZ construction, increasing by a solid 76%
AFPWELLINGTON -- New Zealand's largest listed company Fletcher Building posted a 76-percent rise in annual net profit Wednesday as strong growth in the country's construction sector offset weakness in Australia.
August 22, 2013, 11:35 am TWN
The Auckland-based company said net profit for the 12 months to the end of June was NZ$326 million (US$260 million), up from NZUS$185 million in the previous year.
Chief executive Mark Adamson said the result, which beat market expectations, was due to reconstruction in Christchurch after a devastating earthquake in 2011 and strong demand in Auckland, New Zealand's largest city.
“In New Zealand, our operating earnings before significant items increased by 38 percent and this was driven by rising levels of new house building activity and strong momentum with the repairs and rebuilding work,” he said.
Adamson said Fletcher's Australian operations had been hit by the economy's “soft” performance as the country's mining boom comes to an end.
“Residential and commercial markets were weak, and a slowdown in mining and resources investment had a knock-on effect across other parts of the construction industry,” he said.