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Feb 21 (Reuters) - Fletcher Building Ltd FBU.NZ , New Zealand's biggest construction firm, reported a half-year loss on Wednesday, hit by cost overruns and steep losses in its buildings unit.
Net loss for the six months to Dec. 31 was NZ$273 million ($200.41 million), versus a net profit of NZ$176 million for the same period the previous year, the company said. That compares with a Thomson Reuters I/B/E/S estimate of NZ$79 million profit.
New Zealand's construction sector is booming but Fletcher has struggled to keep up with rising costs of a busy workforce. The firm now faces further labour market tightness as a new government-funded home building programme begins. building products, we have seen gross margins compress as a result of higher input costs and costs associated with increasing supply chain capacity to meet increased demand," said Chief Executive Officer Ross Taylor.
Last week, Fletcher flagged a much wider loss for its commercial building unit than previously estimated, resulting in a breach of financial covenants given to its commercial banking syndicate and U.S. private placement noteholders. Shares have tumbled about 12 percent since that announcement. maintained its full-year earnings guidance, excluding the buildings segment, at NZ$680 million to NZ$720 million.
The company did not declare an interim dividend, in line with its earlier stance.
First-half revenue came in at NZ$4.89 billion up from NZ$4.61 billion a year ago, while underlying earnings excluding the buildings and interiors unit fell 13.4 pct to NZ$309 million.
($1 = 1.3622 New Zealand dollars)