Adelaide Brighton flags potential profit hit

Adelaide Brighton Ltd has cautioned that potential changes to a South Australian cement supply deal could result in a AUD15m profit hit.

The company has warned one of its customers has proposed constructing facilities in Adelaide which would allow it to supply its own cement in the state.
 
Adelaide Brighton says the customer now buys about 120,000t of cement in SA. If the company were to lose the volume from 1 January 2016 Adelaide Brighton expects its profit before tax in 2016 could drop by AUD15m.
 
Adelaide Brighton has advised negotiations have been progressing with the customer for supply beyond 2014.
 
At this stage Adelaide Brighton remains the sole manufacturer of clinker in South Australia.
 
It reported a net profit of AUD151m in the full 2013 calendar year.