The building materials giant says it expects volumes to slide by as much as 15 per cent this financial year, and the Auckland-based company will cut more costs.
Already a subscriber?Fletcher Building, the troubled Auckland-based building materials giant, says it expects sales volumes to slide by up to 15 per cent in Australia and New Zealand as it raises $NZ700 million to shore up its finances and cut debts.
Fletcher Building expects a downturn of between 10 to 15 per cent in market volumes in both Australia and New Zealand for 2024-25, compared with a year ago.The number of new dwellings being built in Sydney, Melbourne and Brisbane has been well under the decade average since the COVID-19 pandemic, and is not forecast to rise to anywhere near the levels seen 10 years ago over the next two years.
Andrew Reding, who was appointed chief executive of Fletcher last month, told an investor briefing on Monday he would cut more costs, increasing the target for savings from $NZ120 million to $NZ180 million this financial year.Each business unit would have specific targets and be held to them. “We’re aggressively attacking costs,” he added.Rising interest rates, soaring building costs and a significant fall in housing affordability for new buyers had all curbed demand.
“We believe the equity raising bolsters our financial position, assisting us to better endure near-term market headwinds,” said Mr Reding.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
PDN ASX: Paradice’s Sam Theodore sees riches in these ASX uranium stocksThe former Blackrock hedge fund manager’s recent trip to Paladin’s flagship Namibia mine has made him more bullish on the controversial energy source.
Read more »
ASX 200 LIVE: ASX to fall; Fortescue, Tabcorp, Flight Centre, Nine and Woolworths to reportShares are set to open modestly lower; S&P 500 edges higher; iron ore advances; oil pulls back; Tabcorp and Nine to post results. Follow updates here.
Read more »
ASX 200 LIVE: ASX to fall; Fortescue, Tabcorp, Flight Centre, Nine and Woolworths to reportShares are set to open modestly lower; S&P 500 edges higher; iron ore advances; oil pulls back; Fortescue, Nine to post results. Follow updates here.
Read more »
ASX 200 LIVE: ASX to fall; Fortescue, Tabcorp, Flight Centre, Nine and Woolworths to reportShares are set to open modestly lower; S&P 500 edges higher; iron ore advances; oil pulls back; Fortescue, Nine to post results. Follow updates here.
Read more »
ASX 200 LIVE: ASX to fall; Fortescue, Tabcorp, Flight Centre, Nine and Woolworths to reportShares are set to open modestly lower; S&P 500 edges higher; iron ore advances; oil pulls back; Fortescue, Nine to post results. Follow updates here.
Read more »
ASX 200 LIVE: ASX to fall; Fortescue, Tabcorp, Flight Centre, Nine and Woolworths to reportShares are set to open modestly lower; S&P 500 edges higher; iron ore advances; oil pulls back; Fortescue, Nine to post results. Follow updates here.
Read more »