Fletcher Building continues to consolidate its balance sheet, this time selling its metals distribution businesses after the announcement on Friday of the closure of the Valencia Formica plant in Spain.
Craigs Investment Partners broker Chris Timms said the move was seen as Fletcher moving out of activities it did not consider core, and other international operating companies were likely to follow as the global cash crisis continued.
Fletcher had a large proportion of overseas investments affected by the cash crisis.
"Any company in this situation would be looking at any method available to generate a better return on investments.
"When they look at costs across various business segments, they will ask, do we need this, or, is this required?"
Fletcher had looked at how to reduce debt, Mr Timms said.
Other international companies would do the same.
Fletcher has sold Austral Wright Metals and Mico Metals to AW Distribution Pty and Wakefield Metals respectively.
It was anticipated that, including collection of the businesses' trade debts, the sale would realise about $70 million.
Austral Wright Metals and Mico Metals were importers and distributors of a range of non-ferrous metals in Australia and New Zealand.
They were acquired by Fletcher as part of last year's acquisition of Crane Group.
