Fletcher Building shares rally on lower earnings hit
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More news: Fletcher Building shares were up on the ASX after the building products supplier said the impact to earnings of a damaged transport ship supplying cement in New Zealand would be at the lower end of its guidance range.
Fletcher shares added 3.1% to $3 by 1pm AEST.
Fletcher Building lowers earnings hit, names new CFO
The news: Fletcher Building has lowered the impact on earnings from disruptions in cement supply in New Zealand after a damaged transport ship returned to service earlier than forecast.
The numbers: The troubled building products supplier had previously outlined a hit of between NZD10 million ($9 million) and NZD30 million ($27 million) on FY25 earnings because a third-party ship used by its Golden Bay cement business for distribution in the North Island developed a mechanical issue. It now expects that impact to be at the lower end of the guidance range.
The context: Fletcher said the issue with the vessel has been resolved in an earlier time frame than forecast and it has returned to service after undergoing necessary checks with marine authorities.
Separately, Fletcher named Will Wright as its new chief financial officer and Haydn Wong as group general counsel. Wright is currently CFO of dual-listed retirement community developer Summerset Group Holdings, and has previously served as CFO of Fletcher’s building products division. Wong has served as acting general counsel and company secretary since April, and previously held senior positions at Bell Gully, one of New Zealand’s leading corporate law firms.
Fletcher cut its FY24 earnings guidance in May amid a slowing market, prompting a downgrade of its credit rating. The NZX and ASX-listed company has seen several top management departures this year, as it faces shareholder discontent over weak share price performance and a half-year loss.
