Building products maker Boral has reaffirmed its full-year guidance, saying performance at its largest division – construction materials and cement – has been in line with expectations.
The upgrade came in a presentation filed with the ASX yesterday as part of a tour of facilities in Sydney and the Southern Highlands by analysts (http://www.boral.com.au/Images/common/pdfs/management-presentations/Australian-Investor-Site-Tour-May2016.pdf).
The company had predicted, at the time of its half-year results in February, that full-year underlying earnings before interest and tax for the division would be marginally better than 2015’s figure.
Boral reported an EBIT of $365 million for the 2014-15 financial year.
Boral booked net profit for the first six months of the fiscal year of $136.6 million, up 31% from the previous year. Full year net profit in 2014-15 was $257 million after tax.
Boral shares rose 2.4% to $6.82 in yesterday’s upbeat market.
Meanwhile, Boral’s Adelaide-based rival Adelaide Brighton said yesterday it is looking for improved sales in several of its key products, thanks to rising demand from east coast markets.
CEO Martin Brydon told the company’s annual general meeting that the company expects 2016 sales volumes of cement and clinker to be similar or slightly less than in 2015.
He said that cement and clinker markets (47% of sales in 2015) in South Australia and NSW were stronger, Victoria and southeast Queensland were stable and Western Australia and the Northern Territory were weaker.
But Mr Brydon said the company expects significant growth in sales of pre-mixed concrete and aggregate sales volumes in 2016, due to stronger east coast markets, while sales of concrete products are also expected to be better than in 2015. Lime sales volume is expected to be slightly higher, with average realised prices likely to be higher.
Adelaide Brighton has raised prices across all products in 2016, a reflection of strong demand and a weaker Australian dollar, which increases the cost of imports, he said.
The company also expects the sale of some property in 2016 to generate a profit of about $6 million.
“There is much more we can achieve as we continue to implement our long term strategy and strive for greater rewards both for our shareholders and for all of the company’s stakeholders," Mr Brydon told the meeting.
Adelaide Brighton made a record annual profit of $208 million in the 2015 calendar year.
The shares rose 4.2% to $5.65.
