CSR’s results for the year to March followed a familiar pattern except for one thing: no capital raising.
It had lower earnings, lower dividend and asset write-downs.
The result was similar to ones from BlueScope Steel, OneSteel and other industrials and banking stocks, plus the odd media company.
But most of those have revealed plans to raise cash from the market as part of an update or trading statement.
Not so CSR which has however restructured debt recently and which raised almost $350 million last November (but that hasn’t stopped GPT, Stockland and BlueScope Steel double dipping).
CSR reported a 30% fall in year underlying profit, a bit better than expectations.
But there’s no outlook or guidance for the year ahead until its annual meeting in July.
But from comments to the media and scattered throughout the rep0ort, the company is pinning 2009-10’s hopes on the home building boom.
That was on revenue of $3.49 billion for the year, up from $3.23 billion.
CSR said earnings before interest and tax EBIT (pre-significant items) for the year ended March 31 was $320.1 million, down 17%, in line with market guidance provided in February
"Sugar EBIT up 17% to $83.7m due to increase in realised raw sugar price and continued growth in earnings from Refining and Ethanol;
"Building Products EBIT down 20% to $117.9m, impacted by the rapid deterioration in market conditions for residential and commercial construction, particularly towards the end of the financial year;
"Aluminium EBIT down 19% to $110.7m due to significant decline in spot price of Aluminium since November and time lag in reduction of input costs;
"Lower EBIT and higher interest costs lowered net profit before significant items by 30% to $134.0 million in line with guidance provided in February;
"Asset write-downs, restructuring costs and increase in product liability provision result in significant items of $532.5m (before tax) including non-cash impairment charge of $279.7 million (before tax) to reduce the carrying value of the Viridian glass business;
"Equity capital raising in November 2008 raises $349 million (before costs)."
"Completed refinancing of $407m of debt facilities maturing in current financial year. The remaining $25m maturity will be retired. At year end undrawn facilities total $519 million.
"Following the capital raising, net debt has reduced to $1,189 million from $1,342 million in September 2008."
"Near completion of key major capital projects will enhance future free cash flow;
"A final dividend of 1.5 cents per share fully-franked; in line with company’s dividend policy and ongoing approach to prudent capital management."
"The Board understands the importance that many shareholders attach to dividends," CSR said yesterday.
In the current uncertain environment, the Board said it believes a cut in the dividend forms "part of a responsible approach to capital management."
CSR said deteriorating economic conditions affected most of its businesses and that "In this environment, we are very focused on managing and improving our individual businesses and positioning them to take full advantage of cyclical upturns".
Net profit for the year to March before significant items fell to $134 million from $193 million before one-offs a year earlier. Analysts had expected a net profit of $125 million.
CSR shares edged up one cent yesterday to close at $1.475.
