At last an improvement in an annual result for CSR to boast about.
Dividend up, earnings improved, debt down and a better outlook.
Final dividend was set at 6c (up from 1.5c) after an interim of 2.5c (down from 6c in the first half of 2009).
That made a total for the year of 8.5c, up 1c on the 2009 figure.
The higher final dividend will be paid on capital expanded by last November’s big share issue.
The sugar, energy and building materials group reported 66% improvement in its annual result (a loss in both years) for the year to March 31.
That was after one-off items (2009 took a big hit from asset impairments), but on a pre-significant items basis the result was still up 29%.
At the same time, CSR said it would continue talks with the Chinese company Bright Star on the possible sell-off of its sugar and renewable energy business.
CSR said its net loss in 2010 was $111.7 million after a loss of $326.5 million in the prior year.
Net profit before significant items was $173.4 million, up 29% on 2009.
The full year result includes the non-cash, pre-tax impairment charge of $250 million to reduce the carrying value of CSR’s Viridian glass business (announced with the interim result).
Group earnings before interest and taxes (EBIT) pre-significant items for the year were $364.1 million, up 14% on the previous year.
The group benefited from the surge in world sugar prices to record levels in the March year, but that impact eased from January onwards as prices halved from then on.
New York sugar traded around 13.9 USc a pound yesterday, less than half the peak price of more than 32 USc a pound.
CSR’s new managing director, Jeremy Sutcliffe, said the company’s two main operating businesses, Sucrogen and Building Products, had strengthened their competitive positions over the year, which was reflected in an overall improved result.
"While Sucrogen benefited from a higher average realised raw sugar price, the improved reliability and performance in the mills following the capital upgrade program also assisted in achieving a very strong result," Mr Sutcliffe said in yesterday’s statement.
"Our building products businesses in general have performed creditably in what continued to be a challenging environment for most of the year and remain well positioned to capitalise on emerging signs of recovery, particularly in residential construction.
"Meanwhile, we continue to generate good earnings and cash flow from our investment in a globally cost competitive aluminium smelter."
CSR said it was inappropriate to forecast fiscal 2011 earnings "at this early stage of its financial year".
The company expects to be able to give directional guidance with the benefit of first quarter trading information at its annual general meeting on July 8.
The company also said it would continue to explore with China’s Bright Food an option of selling off its sugar and renewable energy business, Sucrogen, but at the same time it would continue plans to demerge Sucrogen into a new, listed entity.
"It is the intention of the Board to afford Bright Food a fair and reasonable opportunity to complete due diligence in a timely manner, confirm its valuation of $1.75 billion and progress the obtaining of both Australian and PRC regulatory approvals," it said.
It also was in shareholders’ interests to continue with the demerger plans, it said, with a view to a shareholder meeting being held in August 2010.
The company’s plans to demerge the sugar and ethanol businesses were finally approved by a decision of a Full Federal Court in April.
CSR shares rose 1c, or 2.4%, to $1.70.
