Ann: FLLYR: FBU: Fletcher Building Full Year Results Announcement 2014

• Release Date: 20/08/14 09:06
• Summary: FLLYR: FBU: Fletcher Building Full Year Results Announcement 2014
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					FBU
20/08/2014 09:06
FLLYR

REL: 0906 HRS Fletcher Building Limited

FLLYR: FBU: Fletcher Building Full Year Results Announcement 2014

Auckland, August 20, 2014 - Fletcher Building today reported net earnings of
$339 million for the year ended 30 June 2014, compared with $326 million in
the 2013 financial year. The result included significant items totalling $32
million. Net earnings before significant items were $362 million, 11 per cent
higher than the prior year.

Operating earnings (earnings before interest and tax) were $592 million,
compared with $569 million in the prior year. Operating earnings excluding
significant items were $624 million, up 10 per cent on the prior year and
within the previously announced guidance range of $610 million to $650
million.

Significant items of $32 million were incurred during the year principally
from the sale of the Pacific Steel and Hudson Building Supplies businesses.
The expense reflects the difference between the sale proceeds and asset
carrying values together with transaction costs.

Cash flow from operations was $489 million, compared with $559 million in the
prior year. The reduction was due to increased residential land acquisition
activity in Auckland, higher inventory levels for the Formica plants in
emerging markets, and the timing of customer payments for major construction
projects.

A final dividend of 18.0 cents per share will be paid on 15 October 2014,
with full New Zealand tax credits attached, bringing the total dividend for
the year to 36.0 cents per share.

Fletcher Building chief executive Mark Adamson said the underlying result was
a strong one, with double digit earnings growth despite currency headwinds
and subdued trading conditions in Australia for much of the year.

"We would have met the top end of our guidance range had the New Zealand
dollar not strengthened the way it has over the past year.

"New Zealand volumes tracked the strong activity levels experienced across
the residential, commercial and infrastructure sectors, which drove earnings
growth in our New Zealand businesses.

"In Australia, volumes stabilised during the year and operating earnings in
the second half in Australia were higher than for the same period in the
prior year. However, our reported results were negatively impacted by the
currency translation effects due to the strength of the New Zealand dollar.
Earnings from our businesses in the rest of the world were up strongly
despite the high New Zealand dollar", Mr Adamson said.

Mr Adamson said that substantial progress had been made in implementing the
FBUnite business transformation programme and other cost reduction
initiatives. "FBUnite generated cost savings of $25 million in its first
year, and this was a strong start towards our target of $100 million in
annual cost reductions by 2018."

Looking ahead to 2015, Mr Adamson said the group was well positioned to meet
the strong volumes expected in New Zealand and was hopeful of improved
conditions in Australia.

"We're confident we can further grow earnings in the year ahead, with a
strong construction backlog in New Zealand and further benefits from
FBUnite", Mr Adamson said.

Results overview

Comparisons are with the prior financial year ended 30 June 2013.

Revenue $8,401 million, down from $8,517 million
Net earnings $339 million, up from $326 million
Net earnings before significant items $362 million, up from $326 million
Operating earnings (EBIT) $592 million, up from $569 million
Operating earnings (EBIT) before significant items $624 million, up from $569
million
Cash flow from operations $489 million, down from $559 million
Basic earnings per share  49.3 cents per share, up from 47.6 cents
Basic earnings per share excluding significant items 52.7 cents per share, up
from 47.6 cents
Final dividend 18.0 cents per share, up from 17.0 cents per share

Please refer to the Financial Statements for terms and definitions.

For further information please contact:

Philip King
Group General Manager
Investor Relations & Capital Markets
Phone:  + 64 9 525 9043
Mobile: + 64 27 444 0203
End CA:00254090 For:FBU    Type:FLLYR      Time:2014-08-20 09:06:27