On account of the feeble housing demand globally, the full-year profit of Auckland-based Company Fletcher Building Ltd. dropped 4.1%, exclusive of one-time items.

In the quarter ended June 30, the New Zealand’s largest supplier of building products, Fletcher’s profit declined to NZ$301 million ($214 million) from NZ$314 million last year. Also, its sales declined to NZ$6.8 billion. The EBIT fell
6.6% to NZ$521 million.

After adjusting the balance sheet with deferred taxes and the altered rules of depreciation, the net income of the Company was NZ$272 million.

Jonathan Ling, the Chief Executive Officer of the Company, said, “With the effect of the global financial crisis still being felt around the world, there continues to be uncertainty around the timing and pace of a recovery in economic activity”.

As told by the Company, Fletcher is the manufacturer of colored board for kitchens and sink tops. It is the biggest maker of roof tiles. Due to the fall in the housing demand in Europe and North America; and the slow progress in commercial construction in Australia and New Zealand, the profits of the Company slumped.

No projections have been made for the profits in 2011, as the recovery in housing sector is moving at a slower pace and demand for the houses is less, as expressed by Ling. He further added that though there is anticipation for the Australian housing market to revive, but no such optimism can be assessed for Europe or North America in 2011.