Adelaide Brighton reports slight drop in net profit, Australia

Adelaide Brighton on Thursday booked a net profit for the 2011 calendar year of A$148.4m, down two per cent on 2010 as a result of a higher effective tax rate. The company lifted revenue by 2.6 per cent to a record A$1.1bn.

Managing director Mark Chellew said the profit was a good result in challenging trading conditions."The company's record revenue was achieved largely as a result of demand from mining and resources and projects in South Australia and Western Australia and the continued strength of construction activity in Victoria," he said.

Mr Chellew warned that weakness in the concrete masonry market was expected to continue in 2012 due to difficult conditions in the commercial and multi-residential sectors. "Due to soft housing and commercial activity, trading conditions remain difficult in the concrete masonry market," he said.

"Continued weakness in the Queensland market was exacerbated by very wet weather along the east coast of Australia."

Lime sales volumes were expected to be marginally higher this year, while demand for cement was anticipated to be similar to 2011 levels.

Meanwhile, Adelaide Brighton said it expects the carbon tax will have only a slightly greater effect on its business than initially anticipated.

The company on Thursday said the federal government's carbon tax, effective from July 1, would shave about A$2.7m from its calendar 2012 net profit, before any greenhouse mitigation efforts.

On that basis, the cost to Adelaide Brighton over the first full year of the tax will be A$5.4m, up from the A$5m estimated by the company in August.