FBU - Fletcher Building

[Dust]

Im picking that when Aussie opens that the s p will tank they don't take fools lightly !!

Higher than NZX actually

[minimoke]

Higher than NZX actually

Give them time to catch up FBU on ASX only down 10.3% at moment. At least the Aussies are awake for the 1.00pm phone calls.

[JayRiggs]

This is holding up remarkably well at $6.90.

"Fletcher Building announces further provisions for expected losses in its Buildings + Interiors business of $486 million, leading to a total projected B+I EBIT loss of $660 million in FY18"

"Expected FY18 EBIT for the Fletcher Building Group excluding B+I remains $680 million to $720 million "

They really like mentioning what their EBIT is without B+I losses.
If we include B+I losses to group EBIT, would that imply it would be $20 million to $60 million?

[minimoke]

If we include B+I losses to group EBIT, would that imply it would be $20 million to $60 million?

Thats assuming they didn't use the same accounting people to come up with the B&I reviewed numbers. I wouldn't be trusting any of their numbers

[frostyboy]

My guess is Fletcher building profits excluding B&I are a sham and not sustainable.

I'm guessing B&I have losses as they are forced to buy materials internally at overinflated prices to market. This makes B&I loss making and the rest of Fletcher Building profitable. Without B&I what prices will Fletcher Building materials get? will there be new material entrants?

[Ggcc]

I still think the price is high for now and a price around $5.60-$5.90 is something I would be semi comfortable with the news given. Who knows in 6 months maybe lower maybe higher. But I don’t see it rising in a hurry

[Onion]

One thing occupying Mr Market

FBU value so far today: $87,487,212
Total NZX value today so far: $135,820,254

[Rep]

My guess is Fletcher building profits excluding B&I are a sham and not sustainable.

I'm guessing B&I have losses as they are forced to buy materials internally at overinflated prices to market. This makes B&I loss making and the rest of Fletcher Building profitable. Without B&I what prices will Fletcher Building materials get? will there be new material entrants?

Try buying non FBU plasterboard (Gib), Insulation (Pink Batts), roof tiles, cement, concrete... pipes...

[bull....]

Try buying non FBU plasterboard (Gib), Insulation (Pink Batts), roof tiles, cement, concrete... pipes...

cheap chinese stuff is half the cost and its available at bunnings .... etc not the same quality perhaps anyway i agree with previous poster the business from materials will be less once the b&i is worked thru in a couple years thats when results will come thru lower

[peat]

i must say I start to look a bit sideways at their debt issues now. FBI170 5 year notes being rolled over at coupon of 5% - with 5 year swap rate at 2.7% , that is a reasonable corporate premium , much more than some recent ones that were lower than Term Deposits.
But is it enough to compensate for that increased uncertainty - the feeling that surely must lurk now in all prudent investors - is this the beginning of some slope into worse and worse troubles and eventually the unthinkable.
Other notes are now at yield premium to issue (meaning a capital loss for holders)
I dont think I'd be game to lend to them for 5 years now - even with liquidity allowing an early sale.