Shares in Fletcher Building (FBU) have surged to their highest point since the Global Financial Crisis in intra-day trade after the company's net earnings took the market by surprise for 2012-13.
The building materials manufacturer posted a 76% surge in net earnings to $326 million for the full year to June 30 when analysts were expecting around $318.1 million, sending its shares up 46 cents to touch $7.72 – their highest point since March 2008 – before drifting lower to $7.68.
Fletcher's total operating revenue fell 4% to NZ$8.5 billion.
Chief executive Mark Adamson said the result was driven by a strong performance in New Zealand, offset by softer conditions in Australia.
He expects the earnings outlook for the current financial year to reflect similar conditions in 2012-13, with Australia's market tempering momentum from New Zealand. A further update on earnings will be provided at the annual shareholder's meeting in November.
The final dividend for the year was 17 cents per share, taking the total dividend paid to 34 cents for 2012-13.