Ann: HALFYR: FBI: Fletcher Building Half Rear Results Media Release

• Release Date: 17/02/16 09:01
• Summary: HALFYR: FBI: Fletcher Building Half Rear Results Media Release
• Price Sensitive: No
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					FBI
17/02/2016 09:01
HALFYR
PRICE SENSITIVE
REL: 0901 HRS Fletcher Building Industries Limited

HALFYR: FBI: Fletcher Building Half Rear Results Media Release

Auckland, 17 February 2016 - Fletcher Building today announced its unaudited
interim results for the six months ended 31 December, 2015. The group
recorded net earnings after tax of $172 million, compared with $114 million
in the prior corresponding period.
The result included a net gain within significant items of $10 million
relating to the gain on sale of a number of Rocla Quarries joint venture
assets, partly offset by closure costs of three manufacturing plants. The
result for the prior corresponding period included significant items of $66
million relating to impairment of goodwill and site closure costs. Net
earnings before significant items were 7% lower at $159 million.
Operating earnings (earnings before interest and tax) were $288 million, up
29% on the $224 million earned in the prior corresponding period, while
operating earnings excluding significant items were 4% lower at $278 million.

Revenue for the period of $4,434 million was 2% higher. Cash flow from
operations was $170 million, up 16% from $146 million in the prior
corresponding period.
The interim dividend will be 19.0 cents per share, and will be paid on 13
April, 2016. The dividend reinvestment plan will be operative for this
dividend payment.
Fletcher Building chief executive officer Mark Adamson said the result was
driven by strong performances in the Building Products and Distribution
divisions, offset by lower residential development and construction earnings.

"We saw increased earnings from most of our manufactured building products
businesses in New Zealand and Australia, and continued strong growth in
earnings from our distribution division. This was partly driven by the
strength of the broader construction market, particularly in New Zealand, but
also resulted from the efforts we have made to lift performance across our
business portfolio. This was evident in the performances of our Australian
businesses, with Laminex, Iplex, Fletcher Insulation, Rocla Pipelines,
Stramit and Tasman Sinkware all achieving improved earnings versus last year.

"As expected, earnings from the residential development business were lower
than for the same period last year due to a reduction in earnings from the
Stonefields development. What has been pleasing has been the progress we have
made in sourcing new land for future development and in bringing other
developments to market sooner.
"Similarly, in our construction division, we had lower earnings this half
than last year, which was solely due to the timing of key projects. The
outlook for our construction businesses is encouraging, with committed future
contracted work now standing at $3.3 billion compared with $2 billion a year
ago.
"In terms of the portfolio, with the recently announced conditional
acquisition of Higgins, the sale of the Rocla Quarries assets, and the new
aluminium windows and doors joint venture announced today, we have completed
a substantial reorientation of the group and focused our activities where we
see the best opportunities", Mr Adamson said.
Results overview
Comparisons are with the prior corresponding six month period ended 31
December 2014.
Revenue
$4,434 million, up from $4,327 million
Net earnings
$172 million, up from $114 million
Net earnings before significant items
$159 million, down from $171 million
Operating earnings (EBIT)
$288 million, up from $224 million
Operating earnings (EBIT) before significant items
$278 million, down from $290 million
Cash flow from operations
$170 million, up from $146 million
Basic earnings per share
24.9 cents per share, up from 16.6 cents
Basic earnings per share excluding significant items
23.0 cents per share, down from 24.9 cents
Interim dividend
19.0 cents per share
The dividend will not be franked for Australian tax purposes nor imputed for
New Zealand tax purposes
Dividend payment dates
The dividend will be paid on 13 April 2016 to holders registered as at 5.00
pm Thursday 24 March 2016 (NZT). The shares will be quoted on an ex-dividend
basis from 22 March 2016 on the NZX and ASX.
Dividend reinvestment plan
The dividend reinvestment plan will be operative for this dividend.
Applications to participate must be received by the registry before 5pm
Tuesday 29 March 2016.

Please refer to the Financial Statements for terms and definitions.
ENDS

For further information contact:

Investors:
Philip King
Group General Manager,
Investor Relations & Capital Markets
Phone: + 64 9 525 9043
Mobile: + 64 27 444 0203
Email: [email protected]

Media:
Shannon Huse Caldwell
External Communications Manager
Phone: +64 9 525 9085
Mobile: +64 27 807 2933
Email: [email protected]
End CA:00277756 For:FBI    Type:HALFYR     Time:2016-02-17 09:01:49