Fletcher appoints Ernst & Young as auditor

Fletcher Building, New Zealand's largest listed company, has appointed Ernst & Young as its auditor, ending a 13-year relationship with KPMG.

Ernst & Young is expected to take over in the first quarter of next year, for the company and its subsidiaries, the Auckland-based construction and building products group said in a statement. KPMG has been the company's auditor since 2001, and will continue until the appointment process is complete.

"Following a thorough review and tender process, we are pleased to have selected Ernst & Young as Fletcher Building's new auditor," chairman Ralph Norris said. "We would like to thank our current auditor, KPMG, for their diligence and professionalism since 2001 and look forward to our continuing relationship".

Shares of Fletcher rose 0.2 percent to $8.49 and have fallen 0.5 percent since the start of the year, underperforming the NZX 50 Index's 16 percent gain. The stock is rated an average of 'hold' based on the consensus of 10 analysts surveyed by Reuters, with a median price target of $9.10.