Construction lag times may be over for Fletcher Building, as
positive signs of growth show in Christchurch's rebuild and
more homes being built in Australia.
Fletcher Building shares were buoyed yesterday by an update
on its divisions, in particular in relation to earthquake
rebuilding work in Canterbury.
Fletcher Building has become a much-watched stock after a
broker presentation in Australia late last week sent the
share price down, before a small rally yesterday.
Fletcher Building has delivered an increased after-tax
profit, bettering analysts' expectations.
Fletcher Building can expect a large benefit from declining
funding costs when it rolls over $75 million of capital notes
in mid-March, resetting the interest rate down by 3.5%.
Investor confidence has been repaid as billions flow back
into Fletcher Building's market capitalisation, buoyed by
housing and construction in New Zealand, Australia and the
Fletcher Building shares have hit a 20-month high, but the
forecast strength of the New Zealand dollar against its
United States counterpart could erode long-term after-tax
Shares in Fletcher Building were boosted to a year high
yesterday on news earnings growth could be beyond 20% for
2013 from anticipated buoyancy in new-home construction.
Fletcher Building is picking a relatively flat trading year
for 2013 but the Christchurch rebuilding and major
infrastructure projects should underpin improving results in
Restructuring costs and low work volumes in New Zealand and
Australia soured Fletcher Building's financial result, with
its after-tax profit coming in at the lower end of guidance
and 12% down on last year.
A fresh start from familiar foundations
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