Boral reports strong 1H performance

Boral's turnover for the six months to the end of December jumped by 40.3 per cent to AUD2937m (EUR1868m/US$2312m), helped by the acquisition of the Headwaters business in North America and by a strong performance from Boral Australia. 

EBITDA advanced by 50.1 per cent to AUD500m (EUR318m) while the trading profit increased by 49.8 per cent to AUD316m (EUR201m). After a net interest charge 85.23 per cent higher at AUD50m (EUR31.8m) the pretax profit improved by 44.6 per cent to AUD266m (EUR189m) and the profit after emerged some 58 per cent ahead at AUD237m (EUR151m). The gearing level rose from nil to 43 per cent. Capital expenditure in the period was 13.9 per cent higher at AUD164m (EUR104m).

Boral Australia’s turnover improved by 11.6 per cent to AUD1804m (EUR1147m), while EBITDA was ahead by 11.4 per cent to AUD294m (EUR187m). Cement represented a turnover some two per cent ahead at AUD157m (EUR100m) while turnover in concrete was up by 17 per cent to AUD801m (EUR509m), in asphalt by 24 per cent to AUD371m (EUR236m) and in aggregates it improved by three per cent to AUD204m (EUR130m). Cement volumes increased by seven per cent, with margins improving thanks to higher volumes, price gains and fewer rainy days.

The gypsum joint venture with USG improved turnover by 10.9 per cent to AUD815m (EUR518m), but EBITDA eased by 1.3 per cent to AUD149m. Overall board volumes improved by six per cent and prices were four per cent higher, input costs were also higher, notably for paper. The strongest performances were seen in China and Korea, with volumes also being ahead in Australia and Indonesia.

Boosted by the acquisition of Headwaters, Boral USA saw a substantial rise in turnover from AUD477m to AUD1133m (EUR721m). EBITDA rose from AUD30m to AUD144m while the trading profit rose from AUD41m to AUD184m. The addition of the Headwaters business as well as a strong fly ash performance were the main factors behind the improved results.