Protesters gather outside Fletcher Building AGM, angry at South Auckland housing development

SOUL Collective protesting against Fletcher Building who plan to develop buildings on a wahi tapu

Fletcher Building has fronted up to its shareholders in the wake of a difficult financial year which saw it post a full year (FY2018) profit loss of $190 million dollars in August.

After selling off parts of the company and restructuring some areas, it’s now forecasting 2019’s full year profit (FY2019) to be in the range of $630m to $680 million.

That number’s been put together before ‘significant items’, meaning the actual result could come in lower than anticipated.

While the forecast is an increase on the last annual profit, 2019’s half year profit is being tipped to come in short.

The company expects earnings before interest and tax for the 2019 half year will be 10 per cent lower than earnings reported in its 2018 half year result.

Fletcher Building said it expects further 'material losses' in its building and interiors business.

That’s being pinned on the changing housing market and issues with the company’s Golden Bay cement plant, which was out of action for four weeks this year.

Chief executive Ross Taylor said it’s been a challenging first year with the company, but he was feeling positive about the construction giant’s future.

The company’s also aiming to resume dividend payments in the 2019 financial year, something it had to stop in this year.

Shareholders can expect an update on that in February next year.

Ihumātao protest

Another hot topic at the meeting is a controversial 480-unit Auckland housing estate at Ihumātao, South Auckland.

Around 30 protestors have gathered outside the venue to protest against the development.

Demonstrators have previously called the land at Ihumātao New Zealand’s own “Stonehenge”.

The area contains lava caves and burial sites and archaeologists say built stone structures at Otuataua date to the 13th century.

Earlier this month, the Environment Court rejected an appeal to can the project.

Shareholders are currently voting on the board of directors for the company, and each candidate is being asked to clarify whether they still support the development going ahead.

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