Road-maker and infrastructure company Fulton Hogan appears ideally placed to profit from natural disasters in both New Zealand and Australia.
The privately-held company, now headquartered in Christchurch, has lifted its share of annual revenue from Australia to 59% with the acquisition of Victoria-based Pioneer Road Services.
The company says its business across the Tasman will become an increasingly large source of sales.
Managing director Nick Miller said yesterday the 2011 financial year was difficult for many of the communities in which the company operated.
The year would be remembered for the significant natural disasters that occurred in the New Zealand and Australia, in particular the Christchurch earthquakes and Queensland floods.
"While the physical damage from these events is extensive, it is the social cost that has also taken a heavy toll on the affected communities.
"Despite many Fulton Hogan employees being directly affected, they have all shown the Fulton Hogan spirit of coming together to help get communities back on their feet and back on the road."
It was that commitment to helping others that personified the company's values and allowed it to increase revenue and consolidate operating profit, by 14% and 13% respectively this year, in a marketthat continued to feel the effects of the global financial crisis.
The operating profit for the year ended June was $104.5 million ($92.5 million in the previous corresponding period) and revenue exceeded $2.4 billion ($2.35 billion).
Chairman Ed Johnson said the results were influenced by the significant investment and capital restructuring decisions approved last year, in relation to the acquisition of Pioneer in Australia and the buy-back of Shell's shareholding in Fulton Hogan. Shell's stake is now down to 16% from the original 37% and Fulton Hogan will buy all of the Shell stake by 2014.
Revenue in Australia is forecast to rise to $A1.5 billion ($NZ1.9 billion) in the current financial year, from $A1.3 billion in the previous year.
Spending in Australia on engineering and infrastructure amounted to about $A84 billion a year and was forecast to reach $A100 billion by 2014, underlining the scope for the road-making and infrastructure company to win more business, Mr Miller said.
Australian states and territories with significant resources were more buoyant than those not involved in the mining sector.
Businesses associated with manufacturing had struggled.
In New Zealand, Fulton Hogan might face some slowing of its regional businesses as the Christchurch eartquake recovery process dragged in infrastructure funds.
