Adelaide Brighton net profit A$120.8m for 2008

Adelaide Brighton net profit A$120.8m for 2008
Published: 19 February 2009

Adelaide Brighton Ltd reported a net profit of A$120.8 million for the year to December 31 2008, up 6.1 per cent compared with 2007.

Earnings per share was 22c versus 21c previously. Revenue was up 15.1 per cent to A$1.02bn.

Managing director Mark Chellew said construction activity is being constrained by tight credit markets and compounded in the residential sector by low levels of consumer confidence.

"At this stage it is not possible to predict the extent of this downturn," he said.

"Historical cycles have seen declines in the range of 10-20 per cent, though any impact on Adelaide Brighton cement sales demand will be managed through a reduction of its imported clinker and cement volumes, where we achieve our lowest margins.

"All divisions have set in place specific profit optimisation plans to match capacity with forecast demand and to conduct a rigorous review of all costs in order to reduce their cost base and optimise 2009 performance.

"The company’s national geographic spread will continue to sustain its competitive position in the Australian construction materials sector."