Australia's Boral 2H profit slumps

Hit by weak housing construction in Australia and delays in big resource and road projects, top Australian building products maker Boral Ltd reported a 59 per cent fall in second-half profit, in line with market forecasts.

Boral declined to give a forecast for the year ahead, in light of uncertain market conditions, but said it would update investors at its annual meeting in November.

Net profit for the six months to June fell to AUD34.2m (US$35.6m) from AUD83m a year earlier, as calculated by Reuters from full-year figures and in line with analysts' forecasts of around AUD34m. The bricks, roof tiles and cement maker issued profit warnings in April and June.

Boral had forecast a full-year profit between AUD100m and AUD110m, and reported a full-year profit of AUD101m. The forecast had included the completion of two property sales but one of those fell through, it said on Wednesday.

For 2013, analysts are expecting a 50 per cent improvement in income. Boral’s shares have fallen three per cent so far this year, lagging an eight per cent rise in the broader market.