NZ's Fletcher Building slumps on FY23 forecast cut

Fletcher Building

13/02/2023 03:02

(Updates with ASX-listed shares, Morningstar comment)
    ** Shares of New Zealand's Fletcher Building  FBU.NZ  fall
as much as 7.2% to NZ$5.030 - set to mark worst day since June
25, 2020, if losses continue
    ** ASX-listed shares of FBU  FBU.AX  fall as much as 7.3% to
A$4.580 - their biggest intraday pct fall since May 13, 2020
    ** FBU among top losers on ASX 200 index  .AXJO     
    ** The country's largest construction firm lowers its fiscal
2023 earnings before interest and tax (EBIT) forecast to NZ$800
mln and NZ$855 mln ($504.80 mln-$539.51 mln) from more than
NZ$855 mln previously expected 
    ** Says EBIT forecast lowered as adverse weather conditions
since the start of the year heavily impacted trading
    ** Adds co sees softening of residential markets to continue
into fiscal 2024 in both New Zealand and Australia    
    ** Brokerage Morningstar says adverse-weather events like
severe flooding do not affect co's long-term earning potential
and sees potential for short-term earnings benefit for increased
demand for Fletcher's products
    ** NZ-listed stock has risen 14.8% this year, as of last
close
($1 = 1.5848 New Zealand dollars)
 (Reporting by Nausheen Thusoo and Ayushman Ojha in Bengaluru)
 ((Nausheen.Thusoo@thomsonreuters.com;))