(Adds CEO comment, details on construction demand)
WELLINGTON, Feb 22 (Reuters) - New Zealand's Fletcher Building Ltd FBU.NZ on Wednesday announced a half-year profit rise of 2 percent, as a strong economy supported demand for construction.
The country's largest building firm posted net profit for the six months to Dec. 31 of NZ$176 million ($126 million), compared with $NZ$172 million for the same period the previous year.
"This (profit increase) reflected a sustained improvement across almost all parts of the portfolio, signalling the benefit that businesses are getting from a strong New Zealand economy," said CEO Mark Adamson in a statement accompanying the results.
New Zealand has one of the fastest growing economies in the developed world, which is supporting a construction boom as record migration boosts demand for housing.
Earnings per share were NZ$0.27 and the company is on track for full-year operating earnings between NZ$720 million and NZ$760 million, it said.
It will pay an interim dividend of NZ$0.20 per share, up from NZ$0.19 a year ago.
New Zealand construction activity has increased a deadly earthquake in 2011 destroyed much of the city of Christchurch, although the pace of the rebuild is now beginning to slow.
"Residential demand declined in Christchurch following the peak of the earthquake rebuild, however, this has been more than offset by positive activity growth in all other regions, especially Auckland," Adamson said.
($1 = 1.3966 New Zealand dollars)