The building industry boom continues to lift revenues and earnings for a growing range of companies including Boral, Brickworks, Stockland, Mirvac and, yesterday, CSR which revealed a 48% jump in half year profit to $68.4 million.
Buoyed by resurgent housing construction and stronger earnings in CSR’s aluminium business (as the global trade and prices for the metal edge higher). CSR reported a 15% rise in revenue to $1 billion and an 86% leap in earnings before interest and tax to $114.1 million.
“Residential construction commencements have risen steadily for nearly two years with total dwelling construction up 16 per cent…largely in higher density/other residential segments," the company said.
"Earnings before interest and tax for the company’s building products business were up 22% thanks to higher volumes “across all products reflecting the demand from increasing construction activity.”
Even the very troubled Viridian glass business, which has long been a heavy loss maker, reported earnings before interest and tax of $500,000 for the half, compared with a $10.6 million loss in the same period last year.
CSR managing director Rob Sindel said the turnaround in Viridian is progressing faster than anticipated.
"The restructuring of Viridian remains on track with the business returning to profitability ahead of schedule," he said.
Earnings in the aluminium business rose 71% to $41.4 million due to higher Australian dollar aluminium prices and better performance at the Tomago aluminium smelter in NSW.
CSR declared an interim dividend of 8.5¢ per shares, up 70% on the same period last year.
Looking to the rest of the year, CSR said it was expecting net profit to be close to the upper end of analysts’ current range of $111 million to $134 million, subject to no major disasters or problems emerging.
CSR shares rose 2.8% to $3.60.
