Boral says Q1 trading results down, not aware of takeover offer

Boral says Q1 trading results down, not aware of takeover offer
Published: 19 October 2006

Boral Ltd says its trading results for the September quarter were significantly below last year, which was a pretty ordinary one for the building materials company.

Boral, which has been hit by a slowing housing market and higher construction industry costs, also doused speculation it could be a takeover target of buyout firm Private Equity Partners and Cemex.

Boral made the admissions after the Australian Stock Exchange (ASX) asked it to explain why its share price had jumped from $7.70 on Monday to $8.18 on Wednesday.

ASX asked Boral if its first half operating profits could vary by more than 15 per cent on last year’s first half result, and if it had been approached by potential buyers.

Boral told the ASX that "whilst trading results for the September quarter were significantly below last year", it did not currently anticipate its first half operating profits to vary by 15 per cent.

It said there was no other reason why its share price had jumped over six per cent in just two days.

"... we have no knowledge of the rumoured bid for the company, which has been reported in the media," Boral said.

Boral posted a two per cent fall in full year profit for 2005/06 to $395m.

In August it said this year’s annual result will be at a similar level, but conceded rises in interest rates could affect its revenue.

In the first half, Boral notched up a net profit of $172m, down nine per cent on the prior corresponding period.

The company declined to comment on whether this year’s poorer September quarter would affect its 2007 forecasts.