Fletcher Building Ltd expects Formica sales to rise once the laminates unit has completed its global restructuring, and as the global economy returns to growth, according to Formica chief executive Mark Adamson.
At an investor presentation, Mr Adamson said the housing market seemed to have turned the corner, and noted that the commercial sector typically lags 18 months behind a residential pick-up.
The laminates and panels division sells into residential and commercial sectors, with commercial projects contributing 50-75% of revenue across its Europe, North America and Asian markets.
Mr Adamson said that, for profits to improve, a number of factors were needed, including positive GDP growth, declining unemployment, looser bank lending criteria and a decline in foreclosures and housing stocks.
