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Fletcher Building's Earnings Bounce Back from Pandemic Disruption —Update

WELLINGTON, New Zealand--Fletcher Building Ltd. said its quarterly earnings bounced back from a lengthy pandemic lockdown, helped by a home building boom in New Zealand.

The company's second-quarter earnings before interest and tax rose 73% from a year earlier to 171 million New Zealand dollars ($113 million) after construction recovered from Covid-19 pandemic disruptions in its July-September first quarter.

Ebit before significant items for the July-December first half rose 2.0% from the year before.

The company said a New Zealand lockdown in response to an outbreak of the Covid-19 Delta variant closed almost all businesses for five weeks, which reduced its July-September revenue by NZ$300 million and lowered profits for that period by about NZ$100 million.

Fletcher Building said it expects full-year Ebit of about NZ$750 million, excluding possible costs from an Omicron-variant wave in New Zealand that might total NZ$25 million to NZ$50 million.

The results show operating improvements to the business are on track, Fletcher Building said, forecasting an Ebit margin of 10% in its next financial year. It forecast an Ebit margin of 9.5% for the second half of the current financial year. compared with 7.2% the year before.

 

Write to Stephen Wright at stephen.wright@wsj.com

 

(END) Dow Jones Newswires

February 15, 2022 15:58 ET (20:58 GMT)

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