Ann: HALFYR: FBU: Fletcher Building Half Year Res

• Release Date: 20/02/14 11:04
• Summary: HALFYR: FBU: Fletcher Building Half Year Results Announcement 2014
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					FBU
20/02/2014 09:04
HALFYR

REL: 0904 HRS Fletcher Building Limited

HALFYR: FBU: Fletcher Building Half Year Results Announcement 2014

Name of Listed Issuer: Fletcher Building Limited

For Half Year Ended: 31 December 2013

The amounts as presented have been prepared in accordance with NZ IAS 34
Interim Financial Reporting and give a true and fair view of the matters to
which the report relates and are based on unaudited accounts.

CONSOLIDATED OPERATING STATEMENT FOR THE HALF YEAR ENDED 31 DECEMBER 2013

Unaudited

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

Total operating revenue: $4,273m; down 2%; $4,380m.

OPERATING SURPLUS BEFORE SIGNIFICANT ITEMS AND TAX: $209m; up 12%; $187m.

Significant items for separate disclosure: $nil; n/a; $nil.

OPERATING SURPLUS BEFORE TAX: $209m; up 12%; $187m.

Less tax on operating profit: $50m; up 39%; $36m.

OPERATING SURPLUS AFTER TAX BUT BEFORE MINORITY INTERESTS: $159m; up 5%;
$151m.

Less minority interests: $5m; n/a; $5m.

OPERATING SURPLUS AFTER TAX ATTRIBUTABLE TO MEMBERS OF LISTED ISSUER: $154m;
up 5%; $146m.

Extraordinary items after tax attributable to Members of the Listed Issuer:
0: n/a: 0.

OPERATING SURPLUS AND EXTRAORDINARY ITEMS AFTER TAX ATTRIBUTABLE TO MEMBERS
OF THE LISTED ISSUER: $154m; up 5%; $146m.

Earnings per share:  22.4 cps; up 5%:  21.3 cps

Interim Dividend:  18 cps

Record date: 28 March 2014

Date Payable: 16 April 2014

Tax credits on latest dividend: nil NZ imputation credits, nil Australian
franking credits.

Auckland, February 20, 2014 - Fletcher Building today announced its unaudited
interim results for the six months ended December 31, 2013. The group
recorded net earnings after tax of $154 million, compared with $146 million
in the prior corresponding period.

Operating earnings (earnings before interest and tax) of $281 million were
$19 million or 7 per cent higher than the first six months of the 2013
financial year.

Adjusting for the adverse effects of foreign currency translation, operating
earnings would have been up $32 million or 13 per cent in the period.

Total revenue for the group decreased 2 per cent to $4,273 million, as the
strong New Zealand dollar more than offset underlying revenue growth.
Adjusting for foreign exchange translation effects, revenue would have been
$99 million higher, up 2 per cent.

Cash flow from operations was $179 million, down from $204 million in the
prior period due to the acquisition of residential land in Auckland,
increased inventory levels for the new Formica plant in China, and the timing
of customer payments for major construction projects.

The interim dividend will be 18.0 cents per share, up 6%, and will be paid on
April 16, 2014. The dividend will not be franked for Australian tax purposes
nor imputed for New Zealand tax purposes.

Fletcher Building chief executive Mark Adamson said the improved result was
driven by further increased activity levels across most sectors in New
Zealand and improved conditions in the USA, in addition to early benefits
realised from restructuring and the FBUnite transformation programme.

In New Zealand, where residential housing consents have recovered to levels
last seen in 2008, the continued improvement in house building activity is
expected to underpin trading results for the rest of the year, with
additional activity driven by rebuilding work in Canterbury.

"Across most of our Australian businesses, sales volumes were mixed with
declines in the steel and concrete pipe businesses, while volumes in the
insulation and laminates and panels businesses were steady and increased in
the plastic pipes and quarry sands businesses. In our Tradelink distribution
business we enjoyed improved earnings as a result of the business improvement
initiatives underway in that business," Mr Adamson said.

In other regions, European activity levels stabilised with earnings improving
following last year's restructuring, while volumes in the USA continued to
improve. In Asia, the new $77 million Formica plant, commissioned in
Jiujiang, China in November will provide a platform for further growth in
that region.

The business transformation programme FBUnite continued on track and has
already delivered pleasing results in its first full-year. The annual total
benefit from FBUnite is expected to be approximately $100 million per annum
once the rollout of all initiatives has been completed.

"I'm pleased with the progress we are making towards a more unified and agile
company and our business units are already experiencing real financial
benefits from the various FBUnite work streams," Mr Adamson said.

"Importantly, we are delivering on our earnings growth targets while at the
same time implementing a programme of business enhancement initiatives that
will underpin our operational and financial  performance in the medium-term
and beyond", Mr Adamson said.

Fletcher Building's financial outlook for the 2014 financial year remains
unchanged from that given at the annual shareholders meeting in October 2013,
with earnings before interest, tax and significant items expected to be in
the range of $610 million and $650 million.

See press release for further information.

ENDS

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:00247241 For:FBU    Type:HALFYR     Time:2014-02-20 09:04:10