Revenue for Fletcher, which is the lead contractor in the Canterbury rebuild, rose from $8.66 billion last year to $9 billion for the year to June. Earnings before interest and tax (ebit) were up 43% from $503 million to $719 million, and after-tax profit up 71% from $270 million to $462 million.
From a pinnacle of $13.42 per share in May 2007, Fletcher shares were last at $10 during the slide into the global financial crisis in January 2008, but for the first time in more than eight years traded above $10 yesterday, gaining about 4.5% to $10.12. Fletcher's full dividend for the year rose from 37c to 39c.
Fletcher's chief executive officer, Mark Adamson, said the result was driven by a 29% rise in operating earnings from Fletcher Australian businesses, coupled with strong growth in operating earnings in New Zealand in the distribution, residential and construction divisions.
Total contracted construction work stands at $2.7 billion.
He said Fletcher's restructuring of its business portfolio was ''largely concluded'' after completion of the sale of Rocla Quarries in January and the purchase of Higgins in July.
The construction division reported gross revenue of $1.64 billion, up 23% from a year ago and the highest achieved by the division. The New Zealand businesses delivered record revenue and earnings, he said.
Operating earnings increased from $54 million to $78 million. The prior year had included significant items of $20 million and therefore operating earnings before significant items increased 5%.
Craigs Investment Partners broker Peter McIntyre said the Australian business had a much improved performance in the second half, with ebit up 29% for the year and Iplex returning to profitability. Australia contributed 23% of ebit, up from 19% at the half-year result and 18% for the full year.
''Momentum in New Zealand also continued, with ebit up 6.4% and management citing strong market fundamentals,'' Mr McIntyre said.
Forsyth Barr broker Damian Foster said the result ''appears solid across the board''.
There were robust New Zealand earnings, Australia continued to exhibit significant benefits from self-help initiatives and Formica delivered solid growth in North America and Asia.
Europe broke even in the second half after booking significant losses in the first half, Mr Foster said.
Fletcher said the construction division had been very successful at winning work. The backlog, being the value of contracted work awarded but not yet completed, increased from $2.4 billion in the prior year to $2.7 billion as at June.
''All parts of the business increased their backlog during the year, with construction projects secured across both the commercial and public sectors,'' the company said.
The Canterbury earthquake recovery business had been winding down its operations over the past year as it completed its contractual arrangements with the Earthquake Commission.
Operating earnings reduced in line with workload declines, with only a small level of work still to be completed, by December 2016.
The Residential and Land Development division reported revenue of $343 million, up from $238 million last year, driven by increasing volumes of homes sold plus strong market pricing, particularly in the Auckland region.
Operating earnings of $84 million were up 27% on the year before. New Zealand residential operating earnings were up 12% at $74 million.
''Contrary to earlier expectations, the decreased contribution from the Stonefields development in Auckland was more than offset by an accelerated build programme, including sales from a number of new locations,'' the company said.
