16 Nov 2011

Construction company reports 'disappointing year'

7:21 pm on 16 November 2011

Fletcher Building has reiterated that its first half year profits will be lower because of weak construction activity.

About 500 shareholders attended the firm's annual meeting in Auckland on Wednesday.

They were told it has been a tough year for Fletcher Building and it cannot predict when the construction industry is going to recover.

Chief executive Jonathan Ling says it has been a disappointing year and the company is further reviewing its cost base.

He says the company has had to make a number of staff redundant in both Australia and New Zealand.

Mr Ling says the company will meet its forecast of a flat full year profit unless there's another major downturn in one of its key markets.

Chairman Ralph Waters said the forecast for the year has been reiterated as flat and it is also dependent on no further deterioration in key markets.

He says November will be the crunch month for the company.

The shareholders passed a resolution to increase the fee pool for directors' remuneration by $500 million.

One shareholder suggested putting the increase off for a year given the tough economic environment but others supported the resolution.