Building materials group Boral (BLD) has upgraded its full-year profit expectations thanks to better than expected earnings in June and a higher contribution from property sales.
The company said yesterday it now expects net profit before significant items for the year to June 30 to be in the range of $240 million to $250 million. That was after earning $112 million in the December half year.
The result would represent a lift of at least 40% on 2013-14’s $171 million profit, which itself was a 64% jump on the weak 2012-13 outcome.
Boral said it expects to report property earnings of about $44 million on an after tax basis, but said operating earnings across its divisions "are expected to be broadly in line" with previous guidance.
The company announces its results on August 27.
Boral said operating earnings of all divisions are expected to be broadly in line with divisional outlook commentary provided to the market on February 11 and May 6.
With the Australian home building and constriction boom maturing, this could be about as good as it gets for Boral, although its property business will continue to make more than useful contributions (as is CSR’s to that company’s earnings).
Boral shares edged up 1.4% to $6.45.
BLD 1Y – Property sales boost Boral profit
