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Fletcher Building Shares Buoyed by Earnings Snapback

Fletcher Building Ltd. shares jumped about 6.0% in New Zealand stock market trading after the construction company appeared on track to meet earnings targets despite pandemic disruptions.

The company's half-year earnings report Wednesday showed that it bounced back strongly in the October-December quarter from a lengthy New Zealand pandemic lockdown in the previous quarter, helped by a home building boom.

It said it remains on track to meet its target of a 10% profit margin in its next financial year. Fletcher Buildings shares were up 5.7% at NZ$6.64 They have fallen more than 9.0% so far this quarter alongside weakness in world stock markets.

Chief Executive Ross Taylor told a conference call that strong demand for new homes outstrips building industry capacity.

The backlog of construction work that will sustain the company's residential business for the current financial year and the next financial year, Mr. Taylor said. Pandemic disruptions also will diminish, he said.

 

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

 

(END) Dow Jones Newswires

February 15, 2022 16:40 ET (21:40 GMT)

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