Dual-listed building firm Fletcher has swung to a half yearly profit and resumed its interim dividend payment after initiatives to streamline its core business bore fruit.
New Zealand's largest builder - which is also listed on the ASX - said its net earnings for the six months ended December 31 were $NZ89 million, compared with a loss of $NZ273 million a year ago.
The company announced a dividend of 8 New Zealand cents per share for the first-half, after failing to pay an interim dividend for the first time in its history last year.
Fletcher added that its full-year dividend would be weighed towards the final dividend.
Reveune for the half was down $NZ135 million - or 2.8 per cent - to $NZ4.754 billion.
The Auckland-headquartered firm, which has been trying to rein in ballooning costs by winding down and selling off loss-making units, has been hurt by cooling residential markets in Australia.
This has prompted the builder to lower its full year earnings forecast in November.
Fletcher's Australian business accounted for about a third of its overall revenue in fiscal 2018.
Residential activity represents some 40 per cent of the firm's turnover in Australia.
In December, the company signed an agreement to sell Formica Group to Netherlands-based Broadview Holding BV for $US840 million as it looks to refocus its strategy on its New Zealand and Australian businesses.
"In particular, we have completed the divestment of Roof Tile Group and signed an agreement to sell Formica for $US840 million," CEO Ross Taylor said, adding that Fletcher had made progress on refocusing on its core strategy.
Fletcher upgraded its guidance for full year earnings before interest and tax, excluding one-time items and including Formica earnings, to $NZ650 million to $NZ700 million from $NZ630 million to $NZ680 million.
Fletcher shares were trading at $A5.03 on the ASX before the open of trade on Wednesday, down 18 per cent from $A6.13 a year ago.
FLETCHER BUILDS A PROFIT BUT CUTS GUIDANCE
* Net earnings $NZ89m vs a $NZ273m loss a year ago
* Revenue down 2.8pct to $NZ4.754bn
* Interim dividend 8 NZ cents
