Announcement
HALFYR: FBU: Fletcher Building - 2020 Half Year Results
08:33am
FBU
19/02/2020 08:33
HALFYR
PRICE SENSITIVE
REL: 0833 HRS Fletcher Building Limited
HALFYR: FBU: Fletcher Building - 2020 Half Year Results
Fletcher Building announces FY20 half year results and dividend
Auckland, 19 February 2020: Fletcher Building today announced its results
for the first half of FY20.
Summary:
- Revenue of $3,961 million, in line with market conditions
- EBIT before significant items of $219 million, compared to $248 million in
HY19
- Net Profit After Tax of $82 million, compared to $89 million in HY19
- Balance sheet remains strong, with improved cash flow
- Interim dividend of 11 cents per share declared, to be paid on 9 April 2020
- FY20 Group earnings guidance in the range of $515 million to $565 million
reconfirmed
Fletcher Building Chief executive Ross Taylor said: "HY20 results are in line
with our expectations and those set out at our Annual Shareholders' Meeting
in November 2019. Our business is now stabilised and focused, providing the
foundation to drive consistent performance and growth into the future."
Group revenue was $3,961 million, 5% down on HY19 as anticipated, owing to
reduced revenue on legacy construction projects and tougher market conditions
in Australia. EBIT before significant items was $219 million. Trading
cashflow from continuing operations (excluding legacy projects) increased to
$88 million from $36 million in HY19 due to ongoing improvements in working
capital.
"Our New Zealand core businesses outside of Steel delivered a solid
performance, with earnings in line with last year and improved operating
margins in several areas. In Steel, trading conditions remain challenging,
though we have seen volumes and margins improving as we enter the second
half.
"Residential house sales are benefiting from strong demand, with a large
volume of committed sales due for settlement in the second half.
Construction has secured new work in target areas, and there is no change to
the legacy project provisions. Insurance will respond to loss and damage to
the NZ International Convention Centre caused by the October 2019 fire, and
an extensive work programme to determine the rebuild plan, timeframes and
cost is now underway.
"In the context of a challenging Australian market, we are seeing the
benefits of the cost out programme, as well as our investments in digital and
product innovation flowing through. With the reset well advanced, we have
assessed our portfolio and decided to divest the Rocla business and are now
focused on driving growth and operational performance in our other Australian
businesses. The sale process is expected to be completed through calendar
2020.
"We continue to make investments in innovation and local manufacturing to
drive long-term, sustainable growth for our shareholders.
"An example of this is the new state-of-the-art plasterboard facility we are
building in Tauranga, Bay of Plenty, which we also announced today. The
facility is a firm commitment to local manufacturing, which will enable us to
meet customer demand for the long term. It will also create around 100
permanent regional jobs and supports our goal of reducing carbon emissions by
30% by 2030.
"Our balance sheet remains strong, with our leverage ratio below the bottom
end of our target range.
"In September 2019 we commenced an on-market share buyback of up to NZ$300
million to deliver value to shareholders. We continue to make good progress
and have acquired 27.9 million shares for $141 million, representing 3.3% of
issued capital.
"The Board has declared an interim dividend of 11 cents per share. This will
reflect a more normal first-half, second-half weighting for FY20 and will be
paid to shareholders on 9 April 2020.
"As reported at the Annual Shareholders' Meeting, Group EBIT (excluding
significant items) for FY20 is expected to be in the range of $515 million to
$565 million with earnings weighted to the second half owing to the
Australian cost out programme benefit, residential settlements and improved
steel performance flowing through," concluded Mr Taylor.
#Ends
For further information please contact:
MEDIA
Christian May
General Manager - Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com
End CA:00348605 For:FBU Type:HALFYR Time:2020-02-19 08:33:35
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