Adelaide Brighton Forecasts decline in 2011 net profit

Adelaide Brighton Forecasts decline in 2011 net profit
Published: 07 December 2011

Adelaide Brighton Ltd Wednesday forecast net profit this fiscal year in a range of A$146m-A$152m (US$149.6m-$155.7m), compared with an actual A$151.4m in the fiscal year ended Dec. 31.

National demand for cement in 2011 is similar to 2010, while demand for concrete products remains weak due to soft housing and retail activity, the company reported.

Excluding a temporary shutdown of a major lime customer in the Northern Territory in the fiscal first half, full-year lime sales will be about the same this year as last, Chief Executive Mark Chellew said in a statement.

Australia’s concrete market peaked in mid-2008 after seven years of growth and has suffered a 15% downturn over the past 18 months, he said.

The concrete market is expected to remain flat in 2012 "with some risk to the downside," he said.