Fletcher Building (ASX:FBU) report demand for new houses has been robust

Company News

by Rachael Jones

Fletcher Building (ASX:FBU) report today that Group revenues are up 1 per cent in the trading for the four months ended 31 October 2020 compared to the four months ended 31 October 2019.

Group EBIT margin up 2.9 percentage points to 8.4 per cent due to improved operating efficiency.

Demand for new houses has been robust, with 342 units taken to profit in the Residential business, consistent with the Group’s objective of achieving 700-800 house sales for the full year.

In Construction, the portfolio of work continues to be rebalanced to a lower-risk model, with Fletcher Construction being preferred on further major government alliance work in the period.

In Australia, revenues were slightly lower than the comparative period, with softer demand in the civil segment and COVID-19 restrictions impacting Victoria.

Shares in Fletcher Building (ASX:FBU) closed 0.24 per cent lower at $4.18 yesterday.