Fletcher Building (NZE:FBU, ASX:FBU) reported lower market volumes in its materials and distribution businesses in the first quarter and said this weakness is likely to continue for the rest of the financial year, according to a Wednesday filing with the Australian and New Zealand bourses.

Market volumes in the materials and distribution units declined 10% to 15% year on year in the first quarter of fiscal 2025, while revenue fell 12% in September, following a 7% decline in July and August based on preliminary figures.

"Gross margin pressure continues in a highly competitive environment, especially in New Zealand," said Chief Executive Andrew Reding.

For fiscal 2025, market volumes in the materials and distribution businesses are forecast to be 10% to 15% lower than the prior year. Earnings before interest and taxes are projected to be 60% weighted to the second half, mainly due to cost savings of at least NZ$180 million, seasonally higher house sales, and the absence of around NZ$20 million one-off costs in the first half.

Fletcher Building's shares were down almost 1% in recent Wednesday trade in New Zealand.

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