To be or not to be? (A Conglomerate)
In a recent investor update in Sydney, Fletcher Building’s new CEO, Ross Taylor, took the bold step of comparing the company’s performance to global building material giants such as Saint Gobain and CRH, who respectively have revenues of €44b and €28b (10 and 8 times bigger than Fletchers).
Taylor chose to make the comparison based on Total Shareholder Returns rather than performance metrics such as cash flow or earnings.
Under the TSR metric Fletcher Building sits firmly mid-pack, rewarding shareholders with a relatively meager 4% return over the previous 10 years.
Taylor’s point was that this was clearly not good enough, and that material suppliers with a single product focus were able to deliver much more reasonable returns...MORE»
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Finance boost for UDC buyer
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