Fletcher Building restructures Australian division, forecasts $15m savings
Hamish McBeath, previously New Zealand building products chief executive, would lead this division.
The second unit would include concrete-related businesses like Winstone Aggregates, Golden Bay Cement, Firth Concrete and Humes, the New Zealand steel businesses, and Australia's Stramit.
Thornton Williams, the concrete division chief executive, would lead this division.
Due to the restructuring, former Australian division chief executive Gareth O'Reilly will leave the company.
Fletcher CEO Andrew Reding acknowledged O'Reilly's contributions.
'Alongside this restructuring, a further review of the company's corporate structure has been carried out and it is anticipated that this will deliver approximately $15 million annualised savings in structural costs in the short term which are in addition to the approximately $200m of cost out targeted for FY25,' the company said today.
The review is ongoing, and the group will continue to identify opportunities for further material cost reductions.
Investors will get more information at the company's investor day on June 24.
Reding gave a downbeat update on the business.
Since the December 31, 2024 half-year results were issued, Fletcher's businesses 'have seen no significant improvement in market conditions, with market volumes continuing to be challenging due to macroeconomic uncertainties and the lack of any material momentum in the recovery of New Zealand's economy'.
The company's businesses operating in the commercial and infrastructure segments continue to face reduced or deferred spending, partly due to recent weather events and reduced sub-division activity, Reding said.
Residential property sales also remain at subdued levels, reflecting lower levels of liquidity across the market, he said.
In March, Fletcher announced its much-vaunted Clever Core prefab house-building factory at Wiri in South Auckland will shut, to be replaced next year by a PlaceMakers frame and truss plant.
Clever Core has not worked out and would close by June 30.
'Fletcher Building has made a recent and difficult decision to close Clever Core, our off-site manufacturing business,' a spokeswoman said.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NZ Herald
3 days ago
- NZ Herald
$107 million Australian Powerball jackpot remains unclaimed, search for winner continues
An Australian Powerball player may hold the ticket to becoming an incredible A$100 million richer – without even realising it. The winning Australian ticket from last week's jackpot draw, worth NZ$107m, has yet to be claimed, leading to fears the ticket may have been lost or discarded.
Scoop
3 days ago
- Scoop
Local Opposition To Central Otago Goldmine Conducts Public Meetings
Opponents of a proposed Central Otago goldmine have ramped up their campaign this week, with public meetings in Dunedin and Wānaka. Australian company Santana Minerals has signalled plans to seek a fast-track permit for a mine between Bendigo and Ophir, where it estimated it could extract gold worth $4.4 billion. Lobby group Sustainable Tarras Inc raised concerns about the mine's visibility on the landscape - particularly the inclusion of one large, 1000x850m open pit mine, three smaller satellite pits and a tailings dam. The group also expressed concerns about large quantities of cyanide being stored upstream of the Clutha River, and the potential impact the project would have on the region's tourism and viticulture. Chair Suze Keith said about 50 people turned up in Dunedin on Tuesday and more than 100 had registered for the meeting in Wānaka on Thursday night. Speakers included academics, environmental advocates and Labour Party MP for Dunedin Rachel Booking. Ms Keith said the idea of the meetings was "to make a bit of noise". "We don't think that a project of this scale and of its nature is well suited to fast-tracking decision-making," she said. "It might make the decisions come out quickly, but we've got 10 years of operation of this thing and then we've got the perpetual liability of a toxic tailings dam." Santana Minerals has held its own public drop-in sessions at Tarras and Cromwell to discuss the project, with two more planned in coming weeks. The company said the fast-track application aimed to accelerate decision-making, "but it did not override the requirements of the Resource Management Act or other applicable legislation". Keith said the process had fuelled concerns about limited public input. "People are really interested to understand where it is and what it comprises, because a goldmine is not just a mess of a open hole on the ground, it's got a whole lot of other moving parts to it," she said. "What are the implications for the immediate area and the wider area in terms of what it would mean if it does go ahead?" Satana Minerals said the proposed mine was expected to have low visibility, due to surrounding landforms, and environmental considerations were "central" to project planning. It said the processing plant would be located in the lower Shepherds Valley, "strategically sited to leverage natural topography, thereby minimising potential impacts from noise, light, dust, and visibility". Its tailings dam would be built to the highest safety standards, including resilience to a 1-in-10,000 year seismic event, it said, and the company described the work to support its consent application as "one of the most intensive and comprehensive studies ever conducted on the Dunstan Mountains". Several key ecological reports were still underway and the company planned to lodge its application "at the earliest opportunity".
NZ Herald
3 days ago
- NZ Herald
$107 million Australian Lotto jackpot remains unclaimed, search for winner continues
An Australian Lotto player may hold the ticket to becoming an incredible A$100 million richer – without even realising it. The winning Australian First Division ticket from last week's jackpot draw, worth NZ$107m, has yet to be claimed, leading to fears the ticket may have been lost or discarded.
