FBU-Fletcher Building

[Basil]

Need this sort of thing at the WHS too in my opinion.

CEO Transition
As part of the previously announced CEO renewal process, Fletcher Building Limited ("the Company"), today announced that the Board has appointed Nick Traber as Acting CEO of the Company, replacing Mr Ross Taylor, effective from 29 March 2024 for an interim period until a permanent CEO is appointed.

Mr Traber has been Chief Executive of the Company's high performing Concrete division since January 2021. During his tenure he has improved the operational performance of the division, including lifting its performance in health & safety, customer satisfaction, sustainability, and innovation along with a strong and improved financial performance. Prior to joining the Company, Mr Traber held CEO roles within leading concrete and building materials company, Holcim, in Europe and South America.

The Board is progressing a robust CEO search process which includes Mr Traber as an internal candidate, as well as external candidates. The process for the appointment of a permanent CEO will conclude following appointment of the new Company Chair.

To ensure an orderly transition, Mr Taylor will remain available to support Mr Traber and the business as required until 23 August 2024.

Mr Taylor commented that he is pleased to see Mr Traber appointed as Acting CEO: "Mr Traber has participated in a robust internal succession process and has an impressive track record of strong performance and effective leadership." Mr Taylor looks forward to being available to support Mr Traber in the coming months.

The Board appreciates the contribution Mr Taylor has made in the role and his availability to support Mr Traber over the next few months as required.

Mr Thornton Williams will be appointed acting CE of the Concrete division while Mr Traber is acting in the CEO role. Mr Williams is currently CFO of the Concrete division.

Board Renewal

As also previously announced, the Board of Fletcher Building Limited has committed to a Board renewal process to identify replacement directors and the appointment of a new Chair.

The Board is working with Johnson Partners to assist with this process, and discussions are continuing with potential external candidates. The renewal process will bring new skills and perspectives to the Board, to assist with the options available for the election of a new Chair. The Board is committed to finalising the Board renewal process as soon as possible.

To facilitate the process of Board renewal, Mr Doug McKay has informed the Board that he will step down with effect from 30 June 2024. Additionally, Mr Rob McDonald has advised the Board that he will not stand for re-election at the next annual shareholders' meeting in October and will retire from the Board at that time.

An orderly transition of their Board and Committee responsibilities will occur as the Board supports management in the financial year end processes and in other key areas.

The Board wishes to thank Mr McKay and Mr McDonald for their very significant contributions to the Board over the past five years.

[snapiti]

bloody good clean out in the last couple of month.......warrented IMO

[BlackPeter]

bloody good clean out in the last couple of month.......warrented IMO

I agree that it looks like they identified appropriate run down brooms to replace.

Just hope the new brooms they pick as substitute are really cleaning better.

Lets not forget - Ross Taylor was as well once the new broom to clean out the Augean stable which FBU used to resemble. And just look what a job he did  !?

[Shareguy]

I agree that it looks like they identified appropriate run down brooms to replace.

Just hope the new brooms they pick as substitute are really cleaning better.

Lets not forget - Ross Taylor was as well once the new broom to clean out the Augean stable which FBU used to resemble. And just look what a job he did  !?

Good point BP

[winner (n)]

I agree that it looks like they identified appropriate run down brooms to replace.

Just hope the new brooms they pick as substitute are really cleaning better.

Lets not forget - Ross Taylor was as well once the new broom to clean out the Augean stable which FBU used to resemble. And just look what a job he did  !?

But many/most thought the world of him. I got chastised many times for saying things against him

First red flag was when I heard a FBU/UGL Director shoulder tapped him and suggested he have a chat with Norris ...some recruitment process eh

[Waltzing]

Market update ....

not  many green shoots...

https://www.nzx.com/announcements/430952

[BlackPeter]

Market update ....

not  many green shoots...

https://www.nzx.com/announcements/430952

The thing with FBU is - if things are great, they are doing tough. If things are tough, they are doing tough as well.

Reliable indicator, but as economic indicator not more useful than a broken clock would be to give you the time.

[BlackPeter]

The thing with FBU is - if things are great, they are doing tough. If things are tough, they are doing tough as well.

Reliable indicator, but as economic indicator not more useful than a broken clock would be to give you the time.

Interesting to compare Fletcher Building with Heidelberg Materials (HEI). Latter are listed on the DAX and work in the same industry. Started with Cement, but supplying these days all sorts of building materials. Sure - HEI is a bit larger (well - 5 times the revenue) and active in Europe, Africa and Asia.

While FBU seems to dig a deeper and deeper hole for itself - and since 2022 in a continuous downtrend, HEI is just creaming it and since Sept 2022 on a strong uptrend with SP nearly tripling.

Hey, there is plenty of money in building materials in the current economic climate, just wondering why FBU despite its near monopoly position in NZ is too dumb to collect it.

Probably too fat and lazy. Some companies deserve to be culled.

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Discl:
hold HEI.DE   
... but unfortunately as well some FBU.NZ  ;

[Teitei]

The thing with FBU is - if things are great, they are doing tough. If things are tough, they are doing tough as well.

Reliable indicator, but as economic indicator not more useful than a broken clock would be to give you the time.

Good and valid points well made.

FBU has been shambolically managed for decades, save for the Ralph Waters period. One CEO after another using the reliable earnings and cashflow from their oligopolistic NZ operations to make ill-conceived overseas acquisitions and expansions to stoke their egos at huge costs to shareholders. 

Hope the next CEO is another Ralph Waters.  FBU desperately needs one.

[Basil]

Good and valid points well made.

FBU has been shambolically managed for decades, save for the Ralph Waters period. One CEO after another using the reliable earnings and cashflow from their oligopolistic NZ operations to make ill-conceived overseas acquisitions and expansions to stoke their egos at huge costs to shareholders. 

Hope the next CEO is another Ralph Waters.  FBU desperately needs one.

Nailed it with that comment. I have never held and very unlikely to in the future.
The culture of entitlement starts at the top and permeates throughout the company.

[kiwi2007]

SmartShares Comment:

"...A near-term equity raise is possible, and we need to assess the likelihood of it occurring and its materiality should it eventuate. A sale of the Australian Tradelink plumbing business looks increasingly important to assist in deleveraging..."

[Shareguy]

Craig's don't have much that's positive to say. Yes possible CR coming and further downside risk a real possibility. Even at $3 I don't see it as good buying. Needs to be taken over or split up I reckon.

Our Target Price, now based fully on CIPe 12-month blended forward EPS of 26cps (prev. 30cps) and FBU's historical average PE of 12.8x, is $3.35 (prev. $3.86). FBU is currently trading at 12.1x our expected EPS of c.26cps. Our adjusted approach (prev. 50/50 DCF/PE multiple, $4.39) accounts for what we think are near-bottom of the cycle earnings. We retain our Neutral recommendation and highlight unresolved uncertainty relating to FBU's legacy projects & Iplex iss

[Ferg]

Market update ....

not  many green shoots...

https://www.nzx.com/announcements/430952

Which downgrade number is this.....number 1 or 2?

[entrep]

When there is a CR at $2, I might try and pick some up on market around there.

[Basil]

Which downgrade number is this.....number 1 or 2?

Good question, I am lost because there are so many so called "one-off" extraordinary items provisioning does that could as a general downgrade or not ?