Business Description:
Fletcher Building Limited (FBU) is involved with building products, concrete, steel, construction, property and housing and distribution. Fletcher Building employs over 16,000 people - across New Zealand, Australia, North America, Europe, Asia and the South Pacific.

Strategy Analysis:
FBU is focused on improving earnings reliability and predictability through geographic and industry expansion. The company seeks to maintain and improve internal capabilities through business transformation initiatives and growth-oriented capital expenditure. A marked slowdown in construction activity forced FBU to conserve cash and cut back on capital expenditure. However, going forward, FBU plans to invest in organic and acquisition opportunities which meet its investment criteria. Australasia continues to be the principal area of focus for further expansion. The acquisition of Crane has increased the firm´s exposure to Australia such that it now constitutes 45% of the firm´s revenue. FBU intends to consolidate Crane´s disparate distribution businesses with its own distribution business in NZ in an attempt to drive value and achieve synergies. The non ferrous metals business is non core and will probably be sold. Fletcher Building reported NPAT up 4% to NZ$283m for the year ended 30 June 2011. Revenues from ordinary activities were NZ$7.42bn, up 9% from last year. Diluted EPS was 45.0 NZ cents compared to 44.7 NZ cents last year. Net operating cash flow was NZ$402m compared to NZ$522m last year. The final dividend declared was 17 NZ cents, taking the full year dividend to 33 cents compared with 29 cents last year.