Fletcher Building expects operating earnings in the next financial year to be between $610 million and $650 million.
However, the company warned shareholders on Wednesday morning that the strong New Zealand dollar against the Australian is already hurting earnings and could do more damage.
The expected increase in earnings is being driven by new house building in Christchurch and Auckland, which the company expects to pick up further this year.
Construction across all sectors is also expected to increase.
Chairman Ralph Waters says the worry is the high New Zealand dollar, as the strong exchange rate against the Australian dollar will impact on earnings by $15 million this year. That figure could increase if the kiwi goes higher.
The loss is caused by earnings in Australia that are translated back to the New Zealand currency.
The outlook in Australia remains uncertain, but the company is hoping the change in government there will lead to a more positive business environment.
However, it says the economy is still being dragged down by a slump in the mining and resources sector.
Chief executive Mark Adamson says the priority is to press ahead with a programme to restructure and centralise the business.
He says there are opportunities for organic growth and the company will be looking for small acquisitions.
The company is also starting development next year on a second big housing project in South Auckland, where it will build 1000 houses over the next five to six years.
Mr Adamson says construction activity across all sectors in New Zealand is picking up, while Australia remains uncertain.
He says some of Fletcher Building's key New Zealand projects such as Waterview Tunnel, Wiri Prison and certain North Island roading projects are starting to come through in terms of earnings.
Mr Adamson says the rebuilding of Christchurch will commence at some point next year.
