Fletcher Building Ltd. To Benefit From World Building Industry Slowdown According to BAC Company Report12 Sep 2012 • by Natalie Aster
LONDON – In its recent interview Fletcher Building CEO Jonathan Ling declared current slowdown in the resources sector as a positive factor for Oceanian building materials manufacturers. Local producers may offer a good alternative for imports with weaker Australian dollar.
Mr Ling also presented annual results for the year ended June 30th. Weak NZ and Australian construction markets adversely impacted earnings. Despite revenue increase of 19.6% to NZD 8.9 B net income declined by 34.6% to NZD 185 M. Australia was the main revenue contributor with 47% share, New Zealand brought 41% of the total amount, and the rest of world added 12%. Building Products segment lost 3.2% in revenues and amounted NZD 670 M, Concrete segment generated NZD 958 M (5% up), Construction segment contributed NZD 1040 M (8.8% down), Crane division brought NZD 2.4 B (1.8% down), Distribution segment added NZD 813 M (5% down), Laminates & Panels segment accumulated NZD 1.8 B (6.6% down), Steel segment declined by 5.3% and equaled NZD 1.15 B.
Fletcher Building has developed a strategy to improve its performance in 2013:
- Geographic and end-market diversification
- Decentralized business model
- Market focus on Australia and New Zealand
- Formica growth in Asia
Formed in 2000 and headquartered in Auckland (New Zealand), Fletcher Building engages in light and heavy building materials production. The company mainly focuses on Australian and NZ markets, with minor presence in Asia and USA through its subsidiaries Formica and Crane. The company runs about 50 businesses within 7 segments that unite various operations like plastic pipeline systems, construction materials and services, building products, plumbing and electrical supplies. Fletcher Building trades on NZX and ASX under the ticker FBU.
All the details on the company’s recent activities, financial results, business possibilities and experts’ forecasts can be found in the report “Fletcher Building Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis” recently published by Market Publishers Ltd.
Title: Fletcher Building Ltd. Fundamental Company Report Including Financial, SWOT, Competitors and Industry Analysis
Date: Aug, 2012
More company reports featuring SWOT and financial information, industry and competitors analysis can be found in Company Reports Catalog.