Fletcher Building has posted the expected hefty loss it recently forecast as earnings took a big hit from the Covid-19 lockdown.
Fletcher Building chief executive Ross Taylor. Photo: RNZ / Dan Cook
Its full year loss was $196 million, in line with the guidance it gave last week, but a reversal of last year's $164m profit.
Chief executive Ross Taylor said the company had been recovering from the big losses of a couple of years ago when the pandemic and restrictions on both sides of the Tasman hit.
"Prior to March 2020, the business was trading in line with expectations and making good progress with operating efficiencies. The subsequent lockdown in New Zealand and restrictions in Australia had a significant impact on our ... revenues and profitability."
Restructuring the business and other one off costs cost it $276m, while clearing up the aftermath of previous problem projects knocked earnings by $150m.
He said the company has reduced its cost base by about $300m and looked to conserve cash to get it through the uncertainty, and had made difficult decisions, including sacking about 1500 staff in New Zealand and Australia.
"We have sized our business for a market downturn of around 25 percent in New Zealand and around 20 percent in Australia, although there is a high degree of uncertainty over the outlook.
"We will be looking hard at the trends in activity over the next few months and will be ready to adapt and respond if needed," Taylor said.
He said the company was bidding on projects that offered less risk and better margins than previously and now had a $2.4 billion forward-order book of new work.
The company did not declare a dividend.