Wagners' annual net profit drops by 49%

Wagners in Australia has seen its annual net profit drop by 48.5 per cent to US$12.8m. The construction group blames its dispute with Boral for the poor business results.

The building materials group has reported a 32 per cent fall in earnings from its core construction, materials and services business to AUD30.1m (US$20.38m) after its decision to stop selling cement to Boral. About 40 per cent of Wagners' earnings were generated form its arrangement with Boral until Boral claimed it could buy cement cheaper elsewhere in Queensland.

Delays in big infrastructure projects in Queensland also hit Wagners' core business.