Boral sharply improves net profit

Boral reported that turnover for the six months to the end of December was ahead by 3.6 per cent to AUD2874m (EUR1894m) and EBITDA rose by 16.3 per cent to AUD307m (EUR202m). 

The trading profit advanced by some 49 per cent to AUD168m (EUR111m) and after a net interest charge six per cent lower at AUD47m (EUR31m) and a higher tax charge, the net attributable profit before exceptional items emerged some 73 per cent ahead at AUD90m (EUR59m). 

Net debt at the end of December was 7.4 per cent lower than a year earlier at AUD13789m (EUR915m) to give a gearing level of 41 per cent, compared with 43 per cent a year earlier. Capital expenditure in the period was 30 per cent lower at AUD114m (EUR75m).

The cement, lime, aggegates and concrete operations generated a turnover 2.2 per cent higher at AUD1696m (EUR1118m), while EBITDA was little changed at AUD237m (EUR156m). Cement deliveries increased by five per cent, but the lime volume declined by nine per cent, while the trading profit rose by 58 per cent to AUD57m on a turnover 11 per cent ahead at AUD160m (EUR105m).  Turnover in concrete improved by 9.6 per cent to AUD699m (EUR461m), in aggregates by 5.3 per cent to AUD277m, but declined by 5.6 per cent in asphalt to AUD408 (EUR269m).

Boral Building products generated a turnover marginally lower at AUD248m (EUR163m), with concrete and clay sales being some 8 per cent higher at AUD172m but timber sales declined by 14 per cent to AUD76m. EBITDA recovered from an AUD1m loss to a profit of AUD17m (EUR11m). Brick volumes improved by seven per cent, while roofing volume was flat.

The gypsum division, which is expected to become an associate at the end of February as the deal with USG is finalised, improved by 16.2 per cent to AUD537m and the EBITDA rose by 24 per cent to AUD77m. The Asian business, with Korea being the largest contributor and accounting for 21 per cent of divisional sales, increased turnover by 22.8 per cent to AUD355m (EUR234m) and Australia for the remainder. Asia accounted for some 64 per cent of the AUD55m trading profit. Plasterboard volume increased by 11 per cent in Asia and by four per cent in Australia.

Boral USA improved turnover by 25.9 per cent to AUD335m (EUR221m) and the loss at the EBITDA level was reduced from AUD17m to AUD8m (EUR5m). Brick volumes increased by 20 per cent and prices were broadly stable, with plant utilisation improving from 41 to 49 per cent. Roofing turnover increased by 18 per cent to US$69m and prices and volumes both improved.