Wellington, Nov 27 NZPA - The Fletcher Building board retains confidence in chief executive Jonathan Ling, chairman Roderick Deane is reported as saying.

The comment in an interview with The Dominion Post posted online came after The New Zealand Herald newspaper reported a number of people at Fletcher Building opposed the company's $US700 million ($NZ1.3 billion) purchase of American company Formica Corporation last year.

Mr Ling took over from Ralph Waters in 2006 and previously ran the Laminex business which was combined with Formica.

Dr Deane said concerns raised by Fletcher staff had been canvassed at the time and nobody foresaw that the American market and world economy were going to dip so sharply.

In the latest financial year, to the end of June, Fletcher said Formica's result was well below expectations as the United States housing industry shrunk.

The consolidation of Formica's North American operations was also resulting in higher than anticipated restructuring costs.

Fletcher Building shares were up 13c at $5.70 in afternoon trading.

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