Boral’s pre-tax profit falls 19%

Boral’s pre-tax profit falls 19%
Published: 16 August 2007

In its year to the end of June, Boral increased turnover by 3.0% to Aus$4,909m (3,029m) while the EBITDA declined by 7.4% to Aus$762m (470m), with the trading profit falling by 13.5% to Aus$531m (328m).  The net interest charge rose by 13.3% Aus$111m (68m), leaving the pre-tax profit down by 18.6% to Aus$420m (259m).

 

The Australian construction materials arm increased turnover by 5.8% to Aus$2,549m (1.573m) and EBITDA improved by 10.7% to Aus$454m (280m), out of which concrete and aggregates contributed a turnover of Aus$1,354m (835m) and the cement division Aus$477m (294m).  Cement volumes were stable and average prices rose by approximately 4%.  Blue Circle Southern Cement significantly improved its EBITDA thanks to better prices and an Aus$17m improvement from the Waurn Ponds kiln though repair work at the Berrima works and at Galong led to costs of around Aus$7m.

 

Building products in Australia increased turnover by 5.1% to Aus$1,275m (787m), but the weaker housebuilding activity, essentially in New South Wales, resulted production levels being cut back and in a 6.8% decline in the EBITDA to Aus$151m (93m). The US turnover declined by 7.7% to Aus$883m (545m) as price increases were insufficient to make up for the volume loss in bricks and tiles and the EBITDA dropped by some 41.1% to Aus$129m (80m), but the turnover in the fly ash business was pretty stable in local currency terms at US$116m.  The subsidiaries in Asia contributed a turnover 3.4% higher at Aus$183m (113m) but the profitability suffered from the inability to fully pass on higher cement prices and volumes also suffered in

Indonesia, while the underlying volume in the plasterboard joint venture with Lafarge improved.  The Asian EBITDA declined by some 31% to Aus$21 (13m).