FBU - Fletcher Building

[Balance]

Fascinating chart in a BusinessDesk article re Taylor’s rem.


Breach of copyright but if I give BusinessDesk a plug they mightn’t mind ..subscribe here https://businessdesk.co.nz/why-you-s...o-BusinessDesk

Big payout for Taylor coming in 2022, I suspect.

And well deserved as he has had to do some serious cleaning up of the garbage left behind by his predecessors.

As for Ralph Norris - it is sad that he did not see fit to retire at the very top but presided as Chairman through one of the worse debacles yet in NZ corporate history.

[Balance]

Fascinating chart in a BusinessDesk article re Taylor’s rem.


Breach of copyright but if I give BusinessDesk a plug they mightn’t mind ..subscribe here https://businessdesk.co.nz/why-you-s...o-BusinessDesk

Big payout for Taylor coming in 2022, I suspect.

And well deserved as he has had to do some serious cleaning up of the garbage left behind by his predecessors.

As for Ralph Norris - it is sad that he did not see fit to retire at the very top but presided as Chairman through one of the worse debacles yet in NZ corporate history.

[tim23]

Big payout for Taylor coming in 2022, I suspect.

And well deserved as he has had to do some serious cleaning up of the garbage left behind by his predecessors.

As for Ralph Norris - it is sad that he did not see fit to retire at the very top but presided as Chairman through one of the worse debacles yet in NZ corporate history.

Agree and let us forget the previous CEO!

[winner69]

Latest building consent numbers still strong

Westpac says The pipeline of consents suggests that homebuilding activity will remain strong over the rest of 2021 and into 2022

That’s good

[winner69]

A month ago FBU was heading to 8 bucks

Now it's heading to 7 bucks

When does the buy back start again

[winner69]

jeez - the buyback doesn't start again until 20th of August

Need another earnings upgrade

[Sideshow Bob]

jeez - the buyback doesn't start again until 20th of August

Need another earnings upgrade

Just put the price of Gib, Pink Bats, reinforcing steel etc etc etc up (again).

[JohnnyTheHorse]

jeez - the buyback doesn't start again until 20th of August

Need another earnings upgrade

That's a trade plan I already have filed for next month.

[Balance]

jeez - the buyback doesn't start again until 20th of August

Need another earnings upgrade

STU's earnings upgrade yesterday indicates yet another upgrade before FBU announces its results once all numbers are in.

Meanwhile, FBU's substantial land holding around NZ is already worth potentially billions of dollars more.

[Greekwatchdog]

For Bar just upgraded to Outperform.

OUTPERFORM
We expect Fletcher Building's (FBU) earnings momentum to continue over the next 12–18 months. Whilst capacity and
supply chain constraints are limiting the pace of construction work done in NZ, FBU's domestic manufacturing is
benefitting from lower competition from imports and a strong pricing environment. FBU is not without risk, the principal
being cost pressures not being able to be completely offset with price, however, given consensus is forecasting flat NZ
earnings over FY22/23 we believe risks are skewed to the upside. We upgrade to OUTPERFORM.
What's changed?
Easing competitive constraints...
We expect NZ core to remain stronger-for-longer. Whilst a number of tail winds are likely to ease over the near to medium
term (rising interest rates, subdued population growth, reduced residential supply/demand imbalance) — demand will be underpinned
by a historical under build, solid pipeline, and capacity constraints elongating the cycle. Furthermore, the sharp increase in the price of
transporting goods has reduced competitive pressures from imports with FBU's domestic manufacturing businesses being a key
beneficiary. While cost pressures are emerging, the elevated demand and tight supply environment should see these largely passed
onto customers.
...supports a period of stronger NZ earnings growth
We have upgraded our earnings forecasts for FY22 and FY23. Primarily as a result of increasing NZ materials prices and improving
non-residential/infrastructure activity. However, building materials cost pressures and a softer Australian FY22 (given ongoing
lockdowns) weigh on upgrades. We see upside risk to consensus numbers which currently forecast flat NZ earnings over FY22–23.
Valuation not challenging in an expensive market
While FBU is trading above its long-run average multiples (EV/EBIT and P/E of 11.0x/14.5x vs. historical averages of 10.1x/13.0x) we
do not view this as an impediment to a more positive view given (1) our expectations of upgrades and (2) larger discounts to both the
New Zealand market and Australian building materials peers history. Furthermore, FBU offers a solid cash yield of 5.0%, a healthy
balance sheet, and is in the early stages of a NZ$300m buyback