# FBU - Fletcher Building



## ROE (6 May 2008)

Fletcher Building is a New Zealand based building materials manufacturer and distributor with operations in concrete, steel, fibreglass insulation, aluminium extrusion, roofing, access flooring systems, sinkware, laminates and panels and is involved in residential and commercial construction.


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## lamancha (22 May 2008)

It seems way oversold at this point. I would definitely consider buying it at this point. It is a well run business and pays very good dividend.


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## oldblue (23 May 2008)

lamancha said:


> It seems way oversold at this point. I would definitely consider buying it at this point. It is a well run business and pays very good dividend.





I agree. A good business with excellent management and a strong position in its areas of operation. But the SP has been in a downtrend since December, 2007 and I'm waiting to see a break in this before buying.


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## peter2 (20 March 2017)

In a country plagued by earthquakes, it's surprising that a construction company can't manage to run a profitable business. Today's downgrade in guidance is less than one month after 1H 2017 news. Obviously management don't have control over their business. I hope their reported implementation of the Aconex product will help. 

My management team (does control risk) got me out before the 1H report and I'm glad that I'm not still in waiting to earn the dividend.


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## peter2 (27 June 2017)

Someone other than me is nibbling away at these low levels.


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## peter2 (8 February 2018)

Looks like shareholders are going to take another BIG hit when the shares resume trading. 






FBU has announced poor news three times in 2017 resulting in share price falls. I mark these occasions with the appropriate icon. I've ignored my "rule" of not trading any company with three strikes against management and I'll pay for it.


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## notting (8 February 2018)

They say downgrades and the like tend to come in threes?
I had a bid in at 6 that never got filled.
Might leave it there for the 12 Feb Grand Opening!
Hopefully the Dow will have fallen 1500 points the night before.


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## peter2 (14 February 2018)

How disappointing, price didn't hit 6.00 after resuming trade. Phew. I was very pleased with the open at 6.40. Price ended the day much higher than the open. Quite a bullish day. 

However now that management has earned their fourth "strike" FBU has to go in my "never to be traded" file. As I'm a chart trader I'd have to wait until price gets above $8 or makes new yearly highs before I'm interested again. 

There may be an opportunity here (because of today's bullish close) for those who can analyse the business properly.


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## pixel (13 April 2018)

peter2 said:


> How disappointing, price didn't hit 6.00 after resuming trade. Phew. I was very pleased with the open at 6.40. Price ended the day much higher than the open. Quite a bullish day.
> 
> However now that management has earned their fourth "strike" FBU has to go in my "never to be traded" file. As I'm a chart trader I'd have to wait until price gets above $8 or makes new yearly highs before I'm interested again.
> 
> There may be an opportunity here (because of today's bullish close) for those who can analyse the business properly.



Breakout well above $6 today - yet no news at all for weeks. Can you smell a rat, too?


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## skyQuake (13 April 2018)

WES apparently took a 3-4% stake. T/O rumours abound


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## pixel (13 April 2018)

skyQuake said:


> WES apparently took a 3-4% stake. T/O rumours abound



Thanks for that. Makes sense 
http://www.afr.com/business/retail/...e-on-talk-of-wesfarmers-stake-20180412-h0yph5


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## peter2 (27 April 2018)

Management is trying to contain the damage and has raised capital to reduce debt. 
Price has remained near $6 since the WES news and capital raising. I've put this one back into my reversal watch-list and a close >6.10 would be interesting.


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## peter2 (11 June 2018)

Just checking that I did post this reversal opportunity >6.10. 
I'm a little interested now.


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## Trav. (18 November 2018)

Another chart that caught my eye today. Some commentary below and I will be watching to see what happens over the next week or so.


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## Trav. (20 November 2018)

Well didn't have to wait to long to see which way it would go. Down 10% today to $4.62.

New low since mid 2012


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## Trav. (1 December 2018)

looks like the bottom was at $4.26 and now doing it's best to close the gap back up to $5.18


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## greggles (29 January 2019)

FBU bumping into resistance at $4.80 with a significant gap to fill.


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## Smurf1976 (30 January 2019)

greggles said:


> FBU bumping into resistance at $4.80 with a significant gap to fill.



Volume has died out too.


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## peter2 (21 August 2019)

After at least three years of poor management FBU is now back at GFC lows. Today's optimistic report (aren't they all optimistic?) informs us that the company has successfully started it's 5 year strategy to refocus and grow the business. 





I'll be keeping an eye on the chart looking for indication of institutional buying.


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## peter2 (19 January 2020)

Time for a heads up on FBU. price did bounce off the significant 4.00 support level, drifted down but made a higher low, before breaking higher above the last swing high. in doing this price has gone through the sloping R line indicating the end of the down trend. Last week price BO again from the shallow sideways range. Price is now very close to making a new yearly high and going higher than an older swing high. 

Corporate problems may be over as the insto's* have started to accumulate. 






* and me


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## peter2 (17 August 2021)

It's been a while since I've updated this thread. The purchase outlined in the prior post ended soon after as the Covid selloff hit us in March 2020. I've always thought that *FBU* would be worth a medium/longer term hold once they started to recover from some disastrous failures. 

Price took some time to recover after the Covid low and since then I've been in and out of *FBU* with positive results overall.  

*FBU* are due to report tomorrow morning and I've decided to sell half and grab half of the open profit. I have no idea what the news will do to the price. It could be good or it could be bad. The NSW lockdowns have started to impact the construction industry and this will make it difficult for mgt to provide a corporate outlook. The market may react or not. Selling half is a conservative tactic that I use in uncertain times and when market sentiment is bearish.


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## divs4ever (17 August 2021)

good luck 

 i also hold FBU

 am currently 15% up 

 but if a BIG drop am unsure if i will buy the dip 

 i guess i will read the results first


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## divs4ever (16 February 2022)

Fletcher Building announces FY22 half year results and 18cps interim dividend​
Auckland, 16 February 2022: Fletcher Building today announced its results for the first half of
FY22.
➢ Revenue of $4,064 million, up 2% from $3,987 million in HY21
➢ EBIT before significant items of $332 million, up 3% from $323 million in HY21
➢ EBIT margin of 8.2%, up from 8.1% in HY21
➢ Net Profit After Tax of $171 million, up 41% from $121 million in HY21
➢ Solid cash flows partly offset by inventory rebuild and housing investment as flagged
➢ Fully imputed interim dividend of 18 cents per share declared, to be paid on 7 April 2022
➢ Strong 2Q EBIT of $264 million (up 73% on 2Q FY21) and EBIT margin of 11.8%, offsetting
COVID-19 lockdown impact of c. $105 million on 1Q EBIT
➢ FY22 EBIT before significant items expected to be approximately $750 million
Fletcher Building Chief Executive Ross Taylor said: “With improved operational performance and
cost disciplines now embedded across the business, we were able to deliver a strong HY22
performance. This was despite the first quarter being heavily impacted by the up to five weeklong COVID-19 stringent lockdown in New Zealand and local lockdowns in Australia which
impacted EBIT by approximately $105 million.
“Revenue was robust overall at $4,064 million, up 2% on the first half of FY21. Group EBIT before
significant items was $332 million, up 3% from $323 million in the prior period. Group EBIT margin
excluding significant items improved to 8.2% from 8.1%, and Net Earnings of $171 million were
up 41% from $121 million in the prior period.
“Our strong second quarter performance was a particular highlight in this result where the Group
generated EBIT of $264 million, up 73% on the comparative quarter, delivering a strong Group
EBIT margin of 11.8%, indicating strong momentum into the second half.
“Cash flows from operating activities for the half year were $157 million, compared to $424 million
reported in HY21 and reflects flagged investments to rebuild stock in key areas and housing
investment following a busy FY21.
“The Board is pleased to approve a fully imputed FY22 Interim Dividend of 18.0 cents per share
for the six months ended 31 December 2021, to be paid on 7 April 2022.
“Looking ahead, the second half of FY22 is expected to be very solid with our customers and
forward indicators pointing to continuing volumes. With confidence in our operational disciplines
and in covering inflationary costs, we expect our second half EBIT margin to be approximately
9.5% and to deliver FY22 full year EBIT before significant items of approximately $750 million.
Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
Based on our experience in Australia with the COVID-19 Omicron variant, we foresee a potential
risk impact on our EBIT in the $25 million to $50 million range.
“As we look beyond this financial year, the Group is very well positioned to drive growth. In our
New Zealand materials and distribution divisions we are investing in increased manufacturing
capacity and driving product and market growth. Our Residential and Development businesses
are well advanced in growing annual sales volumes by circa 500 houses a year which includes
our new Vivid Living retirement offer. In Australia, we continue to drive an innovative suite of
disruptive product offers.
“In our markets, in New Zealand, residential consents have been running ahead of industry
capacity for some time. This has created a backlog of work on top of future consents in the
coming years. This is anecdotally supported by our home builder customers generally now
placing orders for their customers 12 to 18 months in advance. In addition, the infrastructure
sector continues to have a strong growth outlook on the back of committed and planned
government projects. Similarly, in Australia, forecasters are all pointing to ongoing strong growth
across residential, commercial and infrastructure through FY23 and beyond.
“Fletcher Building is in a very strong position; our markets look robust, we expect to not see the
significant impacts of lockdowns to reoccur, we remain on track to further improve EBIT margins
across the Group to 10% in FY23 and importantly, we have a maturing pipeline of investments
that will keep driving growth beyond FY23.
“Finally, I’d like to thank our people for their commitment and resilience during demanding times
that has allowed us to deliver this performance. I would also like to acknowledge all our
customers for their continued support.”


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DYOR

i hold FBU

will be interesting to compare it to LLC ( which i also hold )


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