Like interest rates and LVR? RBNZ will have a part to play in that. People just need to remind themselves that when interest rates start to go up they are starting from lows that we haven't seen before.
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Like interest rates and LVR? RBNZ will have a part to play in that. People just need to remind themselves that when interest rates start to go up they are starting from lows that we haven't seen before.
One of many charts on my laptop - Building Activity in NZ from Stats NZ data
I'm always bemused how the FBU share price chart never looks like this
Maybe it's because they never do very well overseas in addition to stuffing things up in NZ
Never mind - just a casual observation because times are different now for one of NZ's biggest companies - aren't they
One of many charts on my laptop - Building Activity in NZ from Stats NZ data
I'm always bemused how the FBU share price never looks like this
Maybe it's because they never do very well overseas in addition to stuffing things up in NZ
Never mind - just a casual observation because times are different now for one of NZ's biggest companies - aren't they
Is that guy Ross Taylor stil in charge at Fletcher HQ
The share price was about $7.20 when he joined in 2017
Fran O'Sullivan did a good interview with Ross after his appointment
Fletcher Building calls in Mister Fix-it
Ross is quoted as saying -
"You have to create an environment where we think through where we want to go and we've got to make sure we're engaged around that, and then you've got to deliver against it. And the beauty of me coming in as an external is you're a circuit breaker", Taylor said
Maybe he saw it as a long term project
Yes hes still in charge. Walked into a Poorly run construction business hence the huge losses in legacy projects. Ralph Norris walked not long after. I judge him from this financial year on. He did buy a number of shares at a high price not long after. Sorry cant remember what price or how many but wasn't far away from $7.
You are an extremely patient and forgiving person
I've only 'traded' FBU twice and made heaps - esp in the early 2000's and even sold at about $12 pre GFC and then had another go about 10 years ago. However never seen anything to attract me back. ....but one performance might be what it should be and the share price might go over $10 again.
I'm quietly watching
PS - Master TA guru Phaedrus one once described FBU as TA person's dream stock - does what it should do or something like that
One of Phaedrus's post on the FBU Chart thread in 2007 said - People often claim that TA is only useful for trading and is quite unsuitable for the longer term. This chart gives the lie to that. TA got you into this stock over 6 years ago in early 2001 - and has kept you in ever since. It will continue to keep you in, so long as the uptrend continues.
He's not the root cause of the issues Winner. Previous CEO/Board were. Look at the destruction of share holder wealth since Chch Earthquakes. How does a business FUBAR it so badly that they controlled?.
Taylor's just cleaned it up and made changes to focus on NZ/Aust. Whether he is done his job will be decided over time. For me its this financial year on regardless of market conditions. They have already made work force smaller for a 15/20% down turn which thus far hasn't eventuated so all I see is positives at the moment given momentum in the market.
Hit a 6month high today. :t_up:
Trading Update https://www.nzx.com/announcements/362925
I thought by end of year but will go with that
Fletcher Building today provided an update on year-to-date trading for its 2021 financial year. Trading for the four months ended 31 October 2020 (“the period”) compared to the four months ended 31 October 2019 (“the comparative period”) (unaudited results):
- Group revenues up 1%
- Group EBIT before significant items of $227 million, up $80 million
- Group EBIT margin up 2.9ppts to 8.4% due to improved operating efficiency
- Cash flow and balance sheet remain strong: net debt $388 million, liquidity $1.4 billion as at 31 October 2020
Group revenues for the period were 1% ahead of the comparative period, supported by resilient trading conditions in both New Zealand and Australia, especially in the residential sector. Revenues in the New Zealand Core were up 4%, with businesses exposed to finishing trades particularly resilient. Demand for new houses has been robust, with 342 units taken to profit in the Residential business, consistent with the Group’s objective of achieving 700-800 house sales for the full year. In Construction, the portfolio of work continues to be rebalanced to a lower-risk model, with Fletcher Construction being preferred on further major government alliance work in the period. In Australia, revenues were slightly lower than the comparative period, with softer demand in the civil segment and COVID-19 restrictions impacting Victoria.
Group EBIT before significant items of $227 million was $80 million or 55% higher than the comparative period. This was achieved predominantly through a 2.9ppts lift in profit margins across the Group, reflecting the operational performance and efficiency programs implemented over the last two years.
Earnings in the New Zealand Core were up 30%, led by the Concrete and Building Products divisions. Residential and Development earnings were materially higher due to strong house sales, while planned Land Development transactions remain on track for completion in the remainder of FY21. Construction earnings were in line with the comparative period. Earnings in Australia increased as cost-out benefits offset the lower overall revenues. Corporate costs remain well-controlled and were slightly lower than the comparative period.
Group cash flows and the balance sheet remain strong, with Group net debt at $388 million and available liquidity of $1.4 billion at 31 October 2020.
Commenting on the year-to-date performance and expected trading conditions for the remainder of FY21, CEO Ross Taylor said: “Through all the disruption and uncertainty of the past year, our people have adapted and responded superbly, maintaining a focus on delivering for our customers. We were heavily impacted in FY20 by the COVID-19 restrictions, resulting in a significant earnings loss for the Group of $196 million, so we are pleased to have begun the new year well. As we look ahead, our customers are pointing to volumes remaining at current levels through to the start of the new calendar year. However, there is uncertainty in the second half of the financial year, with the impact of broader macro-economic factors on our markets in New Zealand and Australia not yet clear. Also, December and January are always lower trading and earnings months for the Group. At our Annual Shareholders Meeting on 25 November 2020, we intend to provide earnings guidance for 1H21. We will update further on trading conditions at our half-year results announcement on 17 February 2021 and at an investor day planned for May 2021.”
Looks like they've been using pretty good caulking lately. https://www.nzx.com/announcements/362925 :t_up:
I'm going to have to look at my DCF analysis and update a few things and post it to you guys eventually, it's good to see Fletcher doing a bit better now! Great update.
$227m in 4 months - annualised nearly $700m
Years since they have had a result like this
Analyst just asked about a half year dividend - CEO said it is a board decision, and that a full year 2021 dividend might be more likely.