Fletcher Building has said that it expects its operating earnings to increase by about 22 per cent in the financial year 2012-13.

The Auckland-based company expects its operating earnings to be between $560 million and $610 million in the financial year till March, 2013. Fletcher Building's chairman Ralph Waters informed shareholders that the company is expecting higher earnings in the financial year. The biggest company on the NZX is expecting higher earnings as home construction boots in the region and it maintains control over its costs.

The figure includes a $20 million restructuring cost and would be between 12 per cent and 22 per cent higher than the previous year. The company had restated its 2012 earnings n order to include a $54 million restructuring cost. The company now treats restructuring cost as normal expense item in the future

Waters said, "The board believes that this is achievable, on the basis of the momentum seen in New Zealand recently, which is expected to continue for the whole of the year. Any further deterioration in the Australian market in particular, or in other key markets in which Formica operates, may necessitate a revision to this guidance."

The shares of the company increased $7.65, recording its highest level since October in the previous year.