FBU-Fletcher Building

[Gerald]

Not all gloomy if they can chug along without a raise. They have spent maybe ~$700 or ~$800m in growth capex over the last few years for things such as the new Tauranga Gib facility that should probably earn something.

Also across the ditch competition CSR getting taken out at 16x ebit. Yes, less debt, more stable earnings etc but who knows? https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02777351-2A1507472

[Shareguy]

The Australian reported yesterday that FBU is understood to have launched the sale process for its plumbing supplies business Tradelink, with detailed documents about the business now with prospective suitors. It is understood information memorandums have been sent out by the group hired to sell the business.

[snapiti]

not unexpected to see a downgrade, created a nice buying opportunity me thinks, bought FBU today based on change of CEO and board members....

[Shareguy]

US Platinum runs ruler over Fletcher Building, taps Gresham. Will Platenum buy some or all or nothing say AFR.

A shame if we loose another NZX company. However this dog has had its day

[snapiti]

I think FBU has made itself a perfect takeover target for those who want to purchase what should be a really great company for dirt cheap.
They have been run into the ground and I believe some entity will purchase the company and strengthen the business then sell off individual business components making an absolute fortune by doing so.

[Mos]

I think FBU has made itself a perfect takeover target for those who want to purchase what should be a really great company for dirt cheap.
They have been run into the ground and I believe some entity will purchase the company and strengthen the business then sell off individual business components making an absolute fortune by doing so.

Agree, takeover by an entity that knows how to run these businesses and put shareholders out of their long term misery. Truly atrocious Board and Management capability and performance over the last decade paid exorbitantly high amounts to destroy value.

[snapiti]

Agree, takeover by an entity that knows how to run these businesses and put shareholders out of their long term misery. Truly atrocious Board and Management capability and performance over the last decade paid exorbitantly high amounts to destroy value.

Yep a perfect example of exactly what you said....quite laughable where the company has ended up

[Left Field]

Fletchers rating downgrade........higher interest costs likely to follow.

https://www.nzx.com/announcements/432341

[Cod]

As i postulated in early feb FBU is going to be a 2.xx stock for a while until something in management changes.

[Mos]

FBU Board makes a hash of sacking itself and appointing a new Chair. The entire Board should be too embarrassed to take any Directors fees.

https://www.nzherald.co.nz/business/mark-cairns-pulls-out-of-farcical-process-for-fletcher-building-chairperson/7X3VBPOJXJCXJP4XFSEJ4QC5YY/

[Basil]

Fiddling while Rome is burning is the accusation.  Shares at ~ 20-year lows and FBU corporate bond yields 9%+ on the secondary market suggests share and bondholders are starting to fret a fair bit.  My thoughts.  The wood rot runs right through this company from the directors to the C Suite and well down the organisational structure.  I wouldn't touch the shares or corporate bonds with a 40 foot barge pole.

[Crackity]

BusinessDesk snippet 🤭



The Freightways chair said that despite widespread shareholder support, after three months of waiting, he was no longer a candidate to become the embattled construction giant's new chair, writing to executive recruitment consultant Johnson Partners to formally withdraw on Monday.  "Rome continues to burn while the shareholders and employees of Fletcher Building await the papal smoke from the remaining board members," he said.  "It is unclear what process is actually being run, yet the company is in relative crisis. I'm focused on various other interests in front of me."

[Mos]

Yes, would be good to see this company broken up into streamlined operating units and the overpaid head office value destroying overhead eliminated.

[Shareguy]

BusinessDesk snippet 🤭



The Freightways chair said that despite widespread shareholder support, after three months of waiting, he was no longer a candidate to become the embattled construction giant's new chair, writing to executive recruitment consultant Johnson Partners to formally withdraw on Monday.  "Rome continues to burn while the shareholders and employees of Fletcher Building await the papal smoke from the remaining board members," he said.  "It is unclear what process is actually being run, yet the company is in relative crisis. I'm focused on various other interests in front of me."

It's further proof of incompetence, which is not surprising given the history or is it M&A well advanced. I go with incompetence.

[Teitei]

It's further proof of incompetence, which is not surprising given the history or is it M&A well advanced. I go with incompetence.

Fletcher at an operating level is in disarray - no co-ordination from head office or the board, one operating division not talking to another, and staff getting desperate as redundancies loom due to lack of work.

I could give an excellent example of that happening but that could reveal my contact so will just write that it is alarming that a company can be so directionless and stuck in the mire.

Something better happen soon as FBU is too important a company to the NZ  building industry to drift like this.