WELLINGTON: New Zealand construction giant Fletcher Building on Wednesday said its full-year profit slumped 20 percent, dragged down by one off costs, although a pickup domestically and in the US boosted revenues.
Net profit in the year to June 30 fell to NZ$270 million (US$177 million), from NZ$339 million a year earlier, hit by NZ$150 million of charges, including from site closure costs and the sale of some businesses.
But revenue rose 3.0 percent to NZ$8.66 billion, while operating earnings before significant items jumped 5.0 percent to NZ$653 million, as business picked up in its key markets.
"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 said in a statement.
Fletcher shares jumped 2.90 percent after the report to NZ$7.80
Cash flow was NZ$575 million, an 18 percent increase, helped by rise in New Zealand housing consents, which hit their highest level since 2007.
Fletcher Building chief executive Mark Adamson said the construction market was strong across all sectors in the company's home market, while a slowdown in the mining and resources sectors hurt its Australia business.
"The New Zealand construction market was strong across the residential, commercial and infrastructure sectors and we experienced strong volume growth in most of our businesses," Adamson said.
"Conditions in Australia were much more mixed, with a buoyant residential construction market but weak conditions in the mining, resources and infrastructure sectors."
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.
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