Ann: FLLYR: FBU: FBL Financial Results for the ye

• Release Date: 22/08/12 11:00
• Summary: FLLYR: FBU: FBL Financial Results for the year end 30 June 2012
• Price Sensitive: No
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FBU
22/08/2012 09:00
FLLYR

REL: 0900 HRS Fletcher Building Limited

FLLYR: FBU: FBL Financial Results for the year end 30 June 2012

Name of Listed Issuer: Fletcher Building Limited

For Year Ended: 30 June 2012

This report has been prepared in accordance with Generally Accepted
Accounting Practice in New Zealand which is the New Zealand equivalent to
International Financial Reporting Standards.  They also comply with
International Financial Reporting Standards.  The amounts presented give a
true and fair view of the matters to which the report relates and is based on
audited accounts.

CONSOLIDATED OPERATING STATEMENT FOR THE YEAR ENDED 30 JUNE 2012

Audited

Current Year NZ$'M; Up/Down %; Previous Corresponding Year NZ$'M

TOTAL OPERATING REVENUE: $8,873m; up 20%; $7,416m.

Operating earnings before restructuring and impairment charges and tax:
$556m; down 7%; $596m.

Restructuring and impairment charges before tax for separate disclosure:
$(153)m; up 47%; $(104)m

OPERATING EARNINGS: $403m; down 18%; $492m.

EARNINGS BEFORE TAXATION: $251m; down 32%; $370m.

Less tax on operating profit: $58m; down 27%; $79m.

EARNINGS AFTER TAX BUT BEFORE MINORITY INTERESTS: $193m; down 34%; $291m.

Less minority interests: $8m; no change : $8m.

NET EARNINGS AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER: $185m; down
35%; $283m.

Earnings per share:  27.2 cps; down 40%; 45.0 cps

Final Dividend:  17.0 cps

Record date: 28 September 2012

Date Payable: 17 October 2012

Tax credits on latest dividend: tax credits of NZ6.6111 cps.
Refer attached press release for further detail.

Auckland, 22 August 2012 - Fletcher Building today reported net earnings of
$185 million for the year ended 30 June 2012, compared with $283 million in
the 2011 financial year.   The result included restructuring and impairment
charges totalling $132 million after tax. Net earnings before restructuring
and impairment charges were $317 million, 12 per cent lower than the prior
year.

Operating earnings (earnings before interest and tax) were $403 million, 18
per cent lower than the $492 million achieved in the prior year, while
operating earnings before restructuring and impairment charges were $556
million, 7 per cent lower than for the prior year.

Restructuring and impairment charges included $38 million in costs incurred
in restructuring the Laminex business, $20 million of closure costs for the
Formica plant in Bilbao, Spain, and a $74 million reduction in the carrying
value of the insulation business in Australia.

Cashflow from operations was $448 million, 11 per cent higher than for the
prior year, driven by stronger cash contributions from Formica and the Crane,
Construction and Steel divisions.

A final dividend of 17.0 cents per share will be paid on 17 October 2012,
with full New Zealand tax credits attached, bringing the total dividend for
the year to 34.0 cents per share.

Chief Executive Officer Jonathan Ling said the result was driven by low
volumes in the group's core markets of New Zealand and Australia.

"Weak building activity in New Zealand coupled with a marked slowdown in
residential and commercial construction in Australia have resulted in lower
earnings being achieved compared to last year", Mr Ling said.

"In the past year in New Zealand we continued to experience very low levels
of new house building. Coupled with the on-going disruption to rebuilding in
Canterbury from further earthquakes, weak commercial construction activity,
and a slowdown in infrastructure spending, we've endured a very tough year in
our New Zealand businesses.

"In Australia, the pace of activity in residential and commercial
construction slowed throughout the year and materially impacted our
businesses exposed to these sectors," Mr Ling said.

"Additionally, the high Australian dollar has adversely affected a number of
our businesses with imports negatively impacting volumes and eroding
margins," Mr Ling said.

Despite the reduction in group earnings, operating earnings in the Concrete
division were up $5 million to $130 million. Within the Laminates & Panels
division, Formica's operating earnings before restructuring and impairment
charges were up 27 per cent to $71 million. Crane, which was acquired in
March 2011, delivered operating earnings of $106 million in its first full
year of ownership.

"We were very pleased with the first full years' contribution from Crane,
achieved despite the weakness in the Australian residential market. The
Concrete division increased earnings from its Australian businesses due to
the strength of the infrastructure sector and improved operational
performance. Formica continued to deliver improved operating earnings through
growth in its Asian business and from improved economic conditions and
operating performance in North America," Mr Ling said.

As announced in February 2012, a review of Laminex was undertaken to
determine how to achieve a step change in its cost structure. Restructuring
costs of $38 million after tax were incurred in the Laminex business during
the year, with $15 million incurred in the first half. In addition, following
the announcement in June of the consolidation of Formica's manufacturing
operations in Spain, $20 million was incurred in closure costs for the plant
in Bilbao.

During the year, a strategic review of the insulation business was completed.
While it has been decided to retain the business, the outcome of the review
highlighted that medium term earnings prospects have deteriorated. This has
necessitated a reduction in the carrying value of the business through a
write down of goodwill, a write-off of stock, and a reduction in the value of
its brands, totalling $74 million after tax.

Results overview

Comparisons are with the prior financial year ended 30 June 2011.

Revenue
 $8,873 million, up from $7,416 million
Includes first full year's trading from Crane

Net earnings
 $185 million, down from $283 million

Net earnings before restructuring and impairment charges
 $317 million, down from $359 million

Operating earnings
 $403 million, down from $492 million

Operating earnings before restructuring and impairment charges
 $556 million, down from $596 million

Cashflow from operations
 $448 million, up from $402 million

Basic earnings per share excluding restructuring and impairment charges
 46.5 cents per share, down from 57.1 cents

Interest cover excluding restructuring and impairment charges
 3.7 times, down from 5.1 times

Final dividend
 17.0 cents per share with full New Zealand tax imputation credits.

Total dividend for the year 34.0 cents per share

The dividend reinvestment plan will be operative for the final dividend
payment

For further information please contact:

Philip King
General Manager Investor Relations
Phone:  + 64 9 525 9043
Mobile: + 64 27 444 0203

ENDS
End CA:00226274 For:FBU    Type:FLLYR      Time:2012-08-22 09:00:08