Fletcher Building Limited (ASX:FBU) has announced a decline in full year profit to $NZ270 million for the year to June 30.
Separately today, Fletcher said it has conditionally agreed to sell the operations of Rocla Quarry Products to Hanson Construction Materials in a deal valued at about A$203 million. Among blue-chip companies due to report this week, Sky TV fell 2.5 per cent to $2.71, leading the benchmark index lower.
Shareholders will receive a final dividend of 19 cents per share, taking the total dividend for the year to 37 cents, up from 36 cents the previous year.
The company expects a pretax gain of about $A100m on the sale, which requires Australian regulatory approval.
Cash flow from operations increased 18 per cent to $575 million from $489 million in the prior year. Operating earnings before one-time items in New Zealand rose by 24%, accounting for 69% of the group total, while in Australia earnings fell by 30% and by 7% for the rest of the world.
The heavy building products, which includes NZ concrete pipes, cement and quarry products, Australian concrete and quarry products, plastic pipes and steel and is Fletcher’s biggest division, recorded a 6 percent decline in gross revenue to $2.1 billion.
Operating earnings (earnings before interest and tax) were $503 million, compared with $592 million in the prior year. Heartland New Zealand rose 0.9 per cent to $1.13 after posting a 34 per cent gain in full-year profit to $48.2m and affirmed its guidance for further earnings growth in 2016.
THE S&P/NZX 50 Index rose 39.25 points, 0.7 per cent, to 5,750.02 on Wednesday. Construction revenue jumped by 21% to US$1.58bn and earnings before items rose by 32% to US$140m.
“The result was driven by increased activity levels across most sectors in New Zealand and improved conditions in the USA, partly offset by subdued markets in Australia and Europe”, the company statement said.
“In Australia, the continued strength of the residential construction market assisted strong performances in our laminates and panels, insulation and distribution businesses”.
Elsewhere, Mr Adamson expected steady activity in North America, weak conditions in Europe and a highly competitive environment in Asia.