Ann: HALFYR: FBU: Financial Results for the Six Months Ended 31 December 2014

• Release Date: 18/02/15 08:49
• Summary: HALFYR: FBU: Financial Results for the Six Months Ended 31 December 2014
• Price Sensitive: No
• Download Document  3.73KB

					FBU
18/02/2015 08:49
HALFYR
PRICE SENSITIVE
REL: 0849 HRS Fletcher Building Limited

HALFYR: FBU: Financial Results for the Six Months Ended 31 December 2014

Auckland, February 18, 2015 - Fletcher Building today announced its unaudited
interim results for the six months ended December 31, 2014. The group
recorded net earnings after tax of $114 million, compared with $154 million
in the prior corresponding period.

The result included significant items of $66 million relating to impairment
of goodwill and site closure costs. Net earnings before significant items
were 11% higher at $171 million.

Operating earnings (earnings before interest and tax) were $224 million,
compared with $281 million in the prior year. Operating earnings excluding
significant items were $290 million, up 3% on the prior corresponding period.

Revenue for the period of $4,327 million was 1% higher. Adjusting for the
sale of businesses announced in the prior year, underlying revenue was up
$108 million or 3%.

Cash flow from operations before net working capital movements was $282
million, up from $267 million. This increase was offset by the cash impacts
of further residential land acquisitions and the one-off purchase of the
group's head office campus in Auckland. As a result, cash flow from operating
activities of $146 million was $33 million lower than the prior corresponding
period.

The interim dividend will be 18.0 cents per share, in line with that paid for
the prior corresponding period, and will be paid on April 15, 2015.

Fletcher Building chief executive officer Mark Adamson said the trading
result was driven by strong activity levels in New Zealand.

"Our New Zealand businesses have continued to perform well and we've enjoyed
strong demand for our products driven by the buoyant construction market.
New Zealand operating earnings were up 20 per cent in the first half. The
forward order book for our construction business now stands at NZ$2 billion,
reflecting very strong future commitments in both the commercial and
infrastructure sectors.

"Other markets have been more mixed for us. In Australia, the residential
market had another strong half, and this benefitted a number of our
businesses, particularly Laminex. The downturn in mining investment and
reduced government expenditure on infrastructure projects, however, continued
to have a negative impact on our results.

"Further afield, we had continued growth in earnings from our Formica
business in North America, but increased competition in China offset stronger
markets elsewhere in Asia, while Europe continued to be challenging", Mr
Adamson said.

Results overview

Comparisons are with the prior corresponding six month period ended 31
December 2013.

Revenue $4,327 million, up from $4,273 million
Net earnings $114 million, down from $154 million
Net earnings before significant items $171 million, up from $154 million
Operating earnings (EBIT) $224 million, down from $281 million
Operating earnings (EBIT) before significant items $290 million, up from $281
million
Cash flow from operations before net working capital movements $282 million,
up from $267 million
Basic earnings per share  16.6 cents per share, down from 22.4 cents
Basic earnings per share excluding significant items 24.9 cents per share, up
from 22.4 cents
Interim dividend 18.0 cents per share
The dividend will not be franked for Australian tax purposes nor imputed for
New Zealand tax purposes
The dividend reinvestment plan will be operative for this dividend.
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:00260763 For:FBU    Type:HALFYR     Time:2015-02-18 08:49:45