Fletcher Building Ltd said today its return to profitability marked the successful execution of the first year of its 5-year strategy aimed at refocusing & growing the business.
Revenue from continuing operations, up 1% to $8.3 billion
Net profit after tax, $164 million ($190 million loss)
Final dividend, 15c/share, full year 23c/share (zero)
Earnings before interest, tax & significant items, $631 million ($50 million)
EBIT, $397 million (118 million loss)
Basic earnings/share, 19.2c (25.5c loss)
Balance sheet strengthened, $300 million share buyback programme
Total assets, $7.7 billion ($8.55 billion)
Net tangible assets (NTA)/share, $3.53 ($2.85)
Gearing, 7.2% (23.5%)
Taylor: Solid, Australian turnaround still to come
Chief executive Ross Taylor said: “The 2019 financial year was an important transition year for the company and we made significant progress on our 5-year strategy. Fletcher Building delivered a solid financial performance for the year, and I am pleased with the work we carried out to stabilise & refocus the company.”
“In New Zealand, our core building products & distributions businesses delivered good results, maintaining strong market positions & revenues despite operating in a highly competitive environment.
“The construction division stabilised, which led to a return to profitability, and we are on track to complete the remaining legacy B+I projects within the provisions we set in February 2018.
“In Australia, the performance reflected tough market conditions, rising input costs & poor operating disciplines in some areas. Turnaround plans are well underway to reset these businesses and deliver growth in the 2020 financial year.
“The company’s decision to operate in a more focused geographic footprint led to the sale of international businesses Roof Tile Group & Formica during the year. Both sales were completed ahead of schedule and the proceeds received were above expectations. The sale of Formica for $1.2 billion materially strengthened the company’s balance sheet, we have commenced our $700-800 million debt reduction and will distribute up to $300 million to shareholders through an on-market share buyback.
“The company reinstated dividend payments during the 2019 financial year, with a total dividend for the year of 23c/share, which was weighted to the final payment.”
Attribution: Company release.