NZ's Fletcher Building reports annual profit on stronger local demand
(Adds segmental metrics, context)
Aug 21 (Reuters) - New Zealand's home builder Fletcher
Building Ltd posted an annual net profit on Wednesday,
compared with a year-earlier loss, boosted by increased home
sales and higher demand for its building products in its
The company reported a 13% increase in revenue from its
local residential segment to NZ$526 million ($337.32 million),
as it sold more homes at higher prices.
The company's Australian business, however, continued to
suffer amid a steep property downturn in the country. Earnings
before tax from the business halved to NZ$57 million.
Australia's housing market has been under immense strain,
with housing prices having fallen every month since late 2017.
The company said it expects weakness in the residential
market in Australia to continue into next year.
Overall, net profit after tax for the year came in at NZ$164
million, compared with a loss of NZ$190 million a year earlier.
The company reinstated dividend payment in the 2019 fiscal
and declared a final dividend of 15 cents per share.
($1 = 1.5593 New Zealand dollars)
(Reporting by Shreya Mariam Job in Bengaluru; Editing by
Bernard Orr and Anil D'Silva)
First Published: 2019-08-20 22:48:03
Updated 2019-08-20 23:16:29
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