Fletcher Building shares climb as cost-cutting program progresses
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More news: Fletcher Building was one of the best-performing companies on the ASX 200 after the building products supplier outlined progress on governance and leadership changes, a strategic review, a cost reduction program and the resolution of legacy issues.
Fletcher Building shares were up 4.1% to $2.95 by 12:10pm AEDT, having risen by around 6% earlier in the session.
The company had otherwise reported a disappointing half-year result, with both its net loss and revenue decline missing market estimates.
Fletcher Building misses expectations with NZ$134m interim loss
The news: Fletcher Building reported a net loss of NZD134 million ($120.20 million) for the half-year, 12% lower than the prior corresponding period and missing Bloomberg estimates of a NZD39.4 million loss.
The numbers: Revenue fell 7% to NZD3.58 billion, also missing expectations, and no dividends were declared.
CEO Andrew Reding attributed the result to “broad-based slowing of demand, intense competitive forces and persistent inflationary pressures.”
He said the company had been working on governance and leadership changes, a strategic review, a cost reduction program, careful capital expenditure and resolving legacy issues.
He said macroeconomic pressures were expected to persist and economic activity would remain subdued this financial year.
What they said: “Our businesses navigated these obstacles by focusing on optimising operational performance and tightly managing the things within our control,” Reding said.
“Macroeconomic pressures are expected to persist and economic activity to remain subdued at below mid-cycle levels for the remainder of the financial year.”
The source: ASX
