Annual earnings for the Rinker Group Ltd’s annual earnings rose 12%, underpinned by the Australian construction-materials company’s extensive operations in the US and a better-than-expected performance by its local cement division.
Rinker, which was spun off from CSR Ltd in March 2003, had net profit of
A$426.8m (US$297.7m) for the year ended March 31. Revenue edged up to A$5.4 billion from A$5.36 billion.
Earnings were bolstered by U.S. subsidiary Rinker Materials, the Readymix
cement unit in Australia and increases in product prices. More than 80% of
Rinker’s earnings are generated in the US.
A year earlier, before Rinker was spun off from CSR, the company reported
net profit of A$381.6m.
Momentum is expected to slow a bit, with Rinker Chief Executive David Clarke
forecasting earnings growth of 5% to 10% for the current fiscal year, amid
rising costs for energy, raw materials and freight.