NZ's Fletcher Building H1 profit lower than expected

WELLINGTON, Feb 20 (Reuters) - New Zealand's Fletcher Building Ltd FBU.NZ , Australasia's biggest building products company, reported a lower-than-expected first-half profit on Thursday but kept intact its guidance for a rise in full-year earnings.

Net profit at the company, which manufactures building products, formica and laminates, roof tiles and insulation, rose 5 percent to NZ$154 million ($128.10 million) in the six months to Dec. 31 from NZ$146 million a year ago.

Forecasts had been for a profit of NZ$178 million, according to a Reuters poll.

Fletcher, which is spearheading earthquake reconstruction projects in the Canterbury region, reported an interim dividend of 18 cents per share, a touch higher than 17 cents a year ago.

The company reaffirmed its guidance for full-year earnings before interest and tax (EBIT) of NZ$610 million to NZ$650 million.

It said increased building activity in New Zealand and improving conditions in the United States had helped its profit, although a strong New Zealand dollar had crimped its earnings by NZ$32 million.

New Zealand and Australia each account for roughly 45 percent of the company's revenue, with the balance coming from the rest of the world.

Shares in Fletcher Building hit a three-month high of NZ$9.72 on Wednesday. They have rallied roughly 14 percent so far this year, outperforming the benchmark NZX50 . ($1 = 1.2022 New Zealand dollars)

(Reporting by Naomi Tajitsu, editing by David Evans)

((naomi.tajitsu@thomsonreuters.com)(+6448027979)(Reuters Messaging: naomi.tajitsu.thomsonreuters.com@reuters.net))

Keywords: FLETCHER EARNINGS/