21 Feb 2014

Fletcher Building growth tipped to come from NZ

10:02 am on 21 February 2014

Fletcher Building expects most of its growth over the next year to come from New Zealand and its recently opened laminates factory in China.

The country's largest listed company, reported a $154 million profit for the six months ended December, compared with $146 million in the same six months a year earlier.

Fletcher Building will move much of its Trans-Tasman administrative operations to Auckland, which will create about 200 new jobs, at the expense of Australian jobs.

Chief executive Mark Adamson says the company's very positive about the New Zealand market and the demand for residential housing is expected to continue until some time in the future.

He says in Australia the budget deficit will impinge on infrastructure spending at the both the federal and state levels, and that is the sector which Fletcher Building is heavily exposed to in Australia.

But Mr Adamson says Fletchers has a programme in place that looks to reduce costs and increase efficiency and it also has exposure to residential housing which is recovering in Australia.

The company also plans to rationalise its property portfolio footprint across New Zealand and Australia which it says will save it about $20 million over the next five years.

Mr Adamson says that outside of New Zealand Fletcher Building expects most of its growth to come from its new factory in China.