Fletcher Building has announced a record full-year profit of NZ$484m. However, once a NZ$70 tax benefit is excluded, the profit came in at NZ$414m, a 9% increase on last year. Normalised earnings per share increased just over 3% to NZ$0.84. The final dividend of NZ$0.23 (ex date 17 Sep) brings full-year dividends to NZ$0.45.

Overall it was a strong result. While earnings per share increased only marginally, this is at a time when most rivals in the industry are struggling to match last year’s figure. We maintain our healthy respect for management, but are still concerned about the share price. Even though it has dropped 8% since our review on 25 May 07 (Take Part Profits – $11.70), it still looks pricey to us as the sector gets set to ride out a downturn. TAKE PART PROFITS.

Brad Newcombe