Any worries that Fletcher Building Ltd [FBU.NZX] might have had a few weeks back about gaps in their order book will have collapsed over the weekend as the big earthquake hit Canterbury and the centre of Christchurch.
I expressed a concern of the lack of work on the books back in August.
There is talk that there could be around $2 billion or more worth of damage to city infrastructure and add to that domestic and commercial buildings and we are looking at a major bill to rebuild Christchurch city and surrounds.
With the current under-use of resources at FBU and other building firms, companies will be ready, able and willing to get to work.
For FBU the whole chain of their business will be involved. From raw materials that they supply to the contracts for sewerage, roads, commercial and residential building this should be a boom time for them in the Mainland.
On top of the $1.7 billion recently shelled out by taxpayers for investors in the failed South Canterbury Finance company, the injection of more billions into this economy will be good news for the area and for companies that can ride of the coattails of more than 4 billion being injected into the region.
Fletcher Building will be well placed to take a large slice of that money.
My best to you all down there. Keep well.
FBU 2010 Profit in detail
Listen to audio of profit presentation - 18/08/10
Presentation in PDF - 18/08/10
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