Boral sees benefits flowing from US Headwaters acquisition

Boral's turnover in its financial year to the end of June 2017 edged up by 1.8 per cent to AUD4388m (EUR2919m/US$3466m) and EBITDA improved by 11.6 per cent to AUD720m (EUR479m).

The trading profit advanced by 15.6 per cent to AUD460m (EUR306m) and after a net interest charge some 20 per cent lower at AUD51m (EUR34m) the pretax profit rose by 22.1 per cent to AUD409m (EUR272m). The net attributable profit advanced by 16 per cent to AUD297m (EUR197m). Net debt at the end of June was 261 per cent higher than a year earlier to AUD2333m (EUR1552m), giving a gearing level of 43 per cent, compared with 25 per cent a year earlier, while capital expenditure in the year was 4.9 per cent higher at AUD340m (EUR226m). 

The Boral Australia operations generated a turnover 0.5 per cent ahead at AUD3296m (EUR2193m) and EBITDA was 7.8 per cent higher at AUD551m (EUR367m). Cement turnover as well as volume and average price all improved by two per cent, with external sales of cement being reduced to allow a greater increase in domestic deliveries. The external turnover was steady at AUD303m (EUR202m). Turnover in concrete improved by 2.2 per cent to AUD1375m (EUR915m), while in aggregates there was a 5.5 per cent improvement to AUD424m (EUR282m), and in asphalt there was a 6.5 per cent advance to AUD691m (EUR460m). Volumes improved by one per cent in concrete and by four per cent in aggregates. Concrete, roofing and timber all experienced lower volumes.

The gypsum operations of the associate USG Boral, contributed a total turnover 5.8 per cent higher at AUD1478m (EUR983m) and EBITDA improved by 13.1 per cent to AUD284m (EUR189m) and the trading profit advanced by 21.2 per cent to AUD217m (EUR144m). Turnover in Australia and New Zealand increased by five per cent to AUD529m (EUR352m) as board volumes increased by around five per cent. Meanwhile in Asia there was a 6.3 per cent advance to AUD949m (EUR631m) with volumes and prices higher in South Korea. However, in Thailand and in Indonesia volumes and profits declined. Smaller markets as Vietnam and India improved their results.

Boral USA improved turnover by 5.8 per cent to AUD1093m (EUR727m), but in local currency the increase was higher at 9.6 per cent to US$823m. At EBITDA level there was an increase from US$68m to US$93m (AUD123m). Brick and other cladding sales advanced by 13 per cent and roofing turnover improved by six per cent to US$187m while the external turnover in fly ash was steady at US$88m. Meridian Brick, the merger of Boral Brick and Forterra Brick, formerly Hanson Brick, became effective last November and generated a turnover of US$282 since then and the end of June. Headwaters was consolidated for an eight-week period. during which it contributed a turnover of US$195m.