Announcement

HALFYR: FBU: Fletcher Building Limited - 2019 Half Year Results 08:32a.m. 
FBU  
20/02/2019 08:32  
HALFYR  
PRICE SENSITIVE  
REL: 0832 HRS Fletcher Building Limited  
 
HALFYR: FBU: Fletcher Building Limited - 2019 Half Year Results  
 
Fletcher Building announces return to profitability, dividend declared  
 
Auckland, 20 February 2019: Fletcher Building today announced net earnings  
of $89 million for the six months ended 31 December 2018, compared with a  
loss of $273 million for the first half of FY18.  
 
EBIT before significant items was $285 million compared with a loss of $322  
million in the prior period. Half year earnings were 8% lower when compared  
with EBIT before significant items (adjusted for B+I provisions) of $309  
million for the first half of FY18. This is within the guidance given at the  
Annual Shareholders Meeting (ASM) in November 2018.  
 
As a result of the return to profitability the Fletcher Building Board is  
pleased to declare an interim dividend of 8.0 cents per share to be paid on  
10 April 2019. Given the expected settlement timing of the Formica sale, the  
FY19 dividend will be weighted towards the final dividend. No New Zealand  
imputation credits or Australian franking credits will be attached to the  
interim dividend. The dividend reinvestment plan will not be operative for  
this dividend.  
 
Fletcher Building CEO Ross Taylor said: "We are pleased to deliver a result  
in line with the earnings guidance provided at the ASM, and to be able to  
reinstate dividend payments.  
 
"In the first half we have made good progress on our strategy to refocus  
Fletcher Building on its core in New Zealand and Australia. In particular,  
we have completed the divestment of Roof Tile Group and signed an agreement  
to sell Formica for US$840 million, which we expect to complete by the end of  
the financial year.  
 
"Our operating results across our core New Zealand businesses have been solid  
in the first half, and we are on track to close-out the B+I projects within  
the current provisions. In Australia we have been impacted by the sharp  
decline in the residential market as well as higher input costs. We are  
focused on setting the Australian business up for improved performance from  
FY20, which will include a reset of the cost base."  
 
Group EBIT (excluding significant items and assuming a full year of Formica  
earnings) for FY19 is expected to be in the range of $650 million to $700  
million. This compares to the earnings guidance of $630 million to $680  
million provided at the ASM. The $20 million increase in earnings guidance is  
due to the treatment of the Formica business as 'held for sale' and hence the  
assets are not subject to depreciation in the second half of FY19.  
 
#Ends  
 
For further information please contact:  
 
MEDIA  
Marie Winfield  
Head of Communications  
+64 27 488 9888  
marie.winfield@fbu.com  
 
INVESTORS AND ANALYSTS  
Aleida White  
Head of Investor Relations  
+64 21 155 8837  
aleida.white@fbu.com  
 
Dial in details for media and investor calls are as follows:  
 
Australia Toll Free: 1 800 558 698  
Australia Local: +61 2 9007 3187  
New Zealand Toll Free: 0800 453 055  
NZ Local (Auckland): +64 9 929 1687  
NZ Local (Wellington): +64 4 974 7738  
NZ Local (Christchurch): +64 3 974 2632  
Hong Kong: 800 966 806  
Japan: 0053 116 1281  
Singapore: 800 101 2785  
UAE: 8000 3570 2705  
United Kingdom: 0800 051 8245  
United States: (855) 881 1339  
 
Media Teleconference  
CEO Ross Taylor and CFO Bevan McKenzie will host a teleconference for media  
at 10.00am NZT today (8.00am AEST) to provide more detail on this  
announcement. The passcode to join the teleconference is Passcode: 277276  
 
Investor Call  
CEO Ross Taylor and CFO Bevan McKenzie will host a teleconference and webcast  
for investors at 11.00am NZT today (9.00am AEST) to provide more detail on  
this announcement. The passcode and link to the webcast to join the  
teleconference and webcast is:  
Webcast: https://edge.media-server.com/m6/p/th68bwxt  
Passcode: 231101  
 
A replay is available using the following details:  
Replay Pin: 7532#  
New Zealand: 0800 886 078  
Australia: 1800 265 784  
Other countries: +61 7 3107 6325  
End CA:00330809 For:FBU Type:HALFYR Time:2019-02-20 08:32:59