Boral boosted by Asian acquisition from Lafarge
Boral increased its turnover for the six months to the end of December by 14 per cent to AUD2774m (€2130m) and the EBITDA was ahead by eight per cent to AUD256m (€197m). Without acquisitions, the largest of which was Lafarge's share of the Asian plasterboard business, turnover would have been broadly stable.
Trading profit was just three per cent higher at AUD112m (€86m) and after a net interest charge 47.1 per cent up at AUD50m (€38m), the pre-tax profit declined by some 16 per cent to AUD62m (€48m). Net debt at the end of December stood at AUD1458m (€1120m) to give a gearing level of 43 per cent, compared with 46 per cent a year earlier. Capital expenditure in the period amounted to AUD155m (€119m).
The cement, lime and concrete placing operations generated a turnover some two per cent higher at AUD213m (€164m), while the EBITDA was around seven per cent lower at AUD62m (€48m). Cement deliveries were marginally higher, but clinker stocks were increased ahead of the closure of the Waurn Ponds production line in May 2013. In the future, the clinker will be imported. The closure of the Port Kembla blast furnace led to an AUD2m reduction in the trading profit as lime sales fell.
Boral Construction Materials, which covers aggregates, concrete and asphalt, saw turnover increase by 19.5 per cent to AUD1437m (€1111m) and the EBITDA advanced by 22.5 per cent to AUD169m (€130m). Underlying volumes declined by four per cent in aggregates, but increased by four per cent in concrete, with prices improving by 12 per cent in aggregates and by seven per cent in concrete. Turnover in asphalt increased by 16 per cent on higher volumes.
Boral Building products generated a turnover 13 per cent lower at AUD315m (€242m), of which clay and concrete products represented half, while the EBITDA dropped from AUD26m to AUD1m and a loss was incurred at the trading level. Boral Gypsum in Australia and in Asia produced a turnover of AUD462m (€355m) and an EBITDA of AUD62m (€47m) and a trading profit of AUD42m, of which Asia contributed AUD31m. The Asian operations were consolidated for the first time, as a result of buying out the previous partner Lafarge. Additional capacities are scheduled to come on-stream in Indonesia and in China early in 2013 and in Vietnam in 2014.
Boral USA improved turnover, most of which is housing-related, by nine per cent to AUD266m (€204m) and the loss at the EBITDA level was reduced from AUD31m (€24m) to AUD18m (€14m). Brick volumes increased by 11 per cent, which more than offset the continued weakness in prices. Roofing turnover increased by 15 per cent as a 21 per cent volume increase more than offset the seven per cent decline in prices. Ready-mixed concrete deliveries rose by 27 per cent but aggregate shipments were only four per cent higher, while the fly ash revenue was little changed.
