Future looking brighter for Fletcher Building, just one year after predicting $1 billion loss

August 21, 2019
Fletcher Building sign and logo

It appears New Zealand's most prominent construction company, Fletcher Building, has rebounded from the brink of disaster - posting a solid fiscal year profit today, just one year after the company announced it was expected to lose almost $1 billion within a two-year period .

The company announced this morning that it has made a net profit of $164 million, citing a solid performance in New Zealand. 

"FY19 was an important transition year for the company and we made significant progress on our five-year strategy," Fletcher Building chief executive Ross Taylor said in a statement.

"Fletcher Building delivered a solid financial performance for the year, and I am pleased with the work we carried out to stabilise and refocus the company."

Revenue generated from the construction company's continuing operations of $8.3 billion increased slightly compared to last year, Fletcher said. Total earnings before interest and taxes was $631 million, up from $50 million last year.

"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," Mr Taylor said.

"We have landed a leaner organisation and end the year with a more manageable footprint and a strong balance sheet. Looking ahead, we will drive performance across the business in FY20."

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