New Zealand-based building products business Fletcher Group has downgraded its EBIT guidance for the year to June 30 to be around $NZ800 million on an EBIT margin of 9 per cent. The downgrade comes after it cut EBIT guidance to between $NZ800 million and $NZ850 million in February in a result it blamed on input cost inflation.
Last week, New Zealand’s economy entered a recession when it posted negative gross domestic product growth of 0.1 per cent for the March quarter. This morning Fletcher also lowered guidance for New Zealand house sales over the financial year to 650 in a result blamed on the slowdown in the nation’s housing market.
It said materials volumes will soften in financial 2024 and guided for the sale of between 700 and 800 homes.