It is the first loss for Fletcher Building, the country's second-largest listed entity.
Fletcher delivered a slightly better than expected full-year result to the end of June yesterday, posting a $46 million after-tax loss compared to analyst predictions of $64 million, and compared to a $467 million profit for the same time last year.
Group sales were steady, mirroring last year's $7.1 billion, but only one if its six divisions, steel, delivered an increase in operating earnings - 52% up at $154 million for 2009.
Fletcher will deliver a final 38c per share dividend, down 10c on last year.
Its share price yesterday traded up more than 7%, around $7.48.
Fletcher chief executive Jonathan Ling said there had been a "marked deterioration" in all Fletcher's major markets, prompting the company to scale manufacturing capacity and restructure operations because of lower volumes.
Earlier in the year, Fletcher raised $526 million in new equity and $131 million in capital notes, with Mr Ling saying yesterday the company had "strong cashflows" after restructuring, 2500 job losses and capital raising - up 23% at $533 million for the year.
"These initiatives have insured that we are well positioned for the current economic conditions and to benefit as volumes grow over time," he said.
However, Mr Ling went on to say the 2010 outlook was "subdued" and most markets expected to record low levels of activity.
Because of the market uncertainty, he declined to give any earnings guidance for 2010.
Its building products division operating earnings were down 28% at $106 million, distribution down 54% at $30 million, infrastructure down 18% at $185 million, property down 77%, from $80 million to $18 million, and laminates and panels down 47% at $74 million.
ABN Amro Craigs broker Peter McIntyre said the $360 million in unusual items was largely in line with earlier guidance and ABN estimates, with the Formica-related impairment charges of $157 million, the write-off of a US tax asset of $60 million and the balance of $143 million in various redundancy and restructuring charges.
"Fletcher paid too much for Formica. It's likely we will see more Formica-related writedowns in the year ahead," Mr McIntyre cautioned.
Fletcher, with a market capitalisation of $4 billion, paid $960 million for Formica.
Mr Ling defended the purchase, saying Formica Asia recorded a profit and North America was over its operational problems.
However, Europe's declining volumes were reflected in falling profitability and reductions and restructuring would be focused on Europe.
Forsyth Barr broker Tony Conroy described the result as "solid" for Fletcher, saying its construction backlog was up from $1.2 billion to $1.4 billion and remained a key positive in the near-term.
He said Formica's earnings before interest and tax of $17 million, "while low, is a small positive, that hopefully can't get worse from here".
"We think the worst is over for Fletcher Building and our $9 [share price] valuation is likely to be revised higher," he said.
Mr Ling said the New Zealand and Australian Governments' commitment to infrastructure spending would provide opportunities, but there was a lag time involved and the spend would compensate only partly for the downturn in commercial and residential work.
