Fletcher Building shares lose 8% on tough results
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More news: Fletcher Building shares have tumbled more than 8% and were trading at $4.67 at lunchtime after the company announced a 46% profit drop, a slashed dividend and an exit date for its CEO.
Fletcher Building reports profit slide, Australia CEO to retire
The news: Fletcher Building has reported a slump in full-year profit amid a slowing market and after taking hefty provisions against two major projects.
The numbers: The company reported a profit of NZD235 million ($217 million) for the year to 30 June, a 46% slide from a year earlier, after additional provisions of NZD255 million on two New Zealand projects. Revenue was slightly lower at NZD8.47 billion. The group will pay a final dividend of 16 NZ cents, down from 22 NZ cents a year earlier.
The context: The dual-listed Fletcher, which supplies a range of building products in Australia and New Zealand, has been affected by a slowing construction market in both countries as their central banks have ramped up rates. CEO Ross Taylor said he expects some tightening in overall volumes across the Australasian operations in 2023-24. The company also announced that the CEO of its Australian arm, Dean Fradgley, would be stepping down from his position in early 2024.
The source: ASX announcement
