Building products and investment company, Brickworks Limited (BKW), shares added 5 cents to $13.59 after it noted mixed first quarter results at today's annual general meeting due to tough market conditions.
The first quarter results to the end of October were aided by the sale of the company's Eastwood site to AV Jennings.
"Land and development business was boosted by the sale of the Eastwood site to AV Jennings, lifting the first quarter earnings to be above last year's," managing director Lindsay Partridge said in a statement to the stock exchange.
In contrast, the building products side of the business, which owns brands such as Austral Bricks, Austral Masonry, Bristile Roofing, Eureka Tiles and Auswest Timbers, delivered a first quarter earnings before interest and tax (ebit) loss of 15% on last year.
This was mainly due to "poor weather in the first few months, and disruptions caused by the transition from Scoresby to the new plant at Wollert in Victoria".
"Building products experienced stronger trading conditions in Queensland, Victoria and South Australia, continuing poor conditions in New South Wales and softening condition in Western Australia," Partridge said.
The investments division saw its holdings in Washington H. Soul Pattinson increase in value by $217 million.
"Brickworks outlook for 2008 is positive with an improved investment performance and solid land & development profits likely to offset any decline in building products caused by recent and further likely interest rate rises," the company said.
The meeting precedes two reports relevant to the industry due to be released on Wednesday.
The Housing Industry Association will be releasing new home sales figures, whilst the Australian Bureau of Statistics will deliver figures on construction work for September quarter.
Brickworks is one of Australia's largest brick manufacturers, and a major roof and floor tile producer. The New South Wales-based company holds a 42.85% stake in Washington H Soul Pattinson.
