Andrew Reding. Photo: Supplied
Fletcher Building says its first-quarter materials and distribution business is down 10 to 15 percent, which is expected to persist over the rest of the financial year.
Company chief executive Andrew Reding told shareholders at Wednesday morning's annual meeting gross margins were under pressure, with revenue down 12 percent in September versus 7 percent down in July and August, compared to the year earlier.
The number of house sales were averaging 17 per week in the September quarter, compared with 23 per week the year earlier.
He said cost savings of at least $180 million were expected to be weighted in the second half of the financial year, with about 170 to 180 more residential house sales expected in the second half over the first.
Fletcher also expected to incur one-time costs about $20m in the fist half related to the outage of the Golden Bay cement ship.
"We have well-positioned, quality businesses that operate in appealing markets. And we have strengthened our balance sheet which allows us to focus on executing operational and strategic initiatives," Reding said.
"Fletcher Building is a company with enormous potential and opportunities, managed and operated by people who are passionate about what they do."
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