Australia: Boral suffers AUD212m annual loss

Boral's net loss in the year to 30 June was down from a AUD177m (US$159.5m) profit in the FY11-12. It suffered a AUD212m (US$191m) annual loss. The fall in revenue was caused mainly by a AUD316m cost in asset write-downs and restructuring. The company also recorded the loss of 2130 jobs. However, underlying profit was AUD104m, up three per cent from the previous year.

Chief executive Mike Kane said the company continued to face significant challenges. "We experienced low levels of activity, ... intensified competition and AUD15m of unrecoverable costs associated with the carbon tax," he told reporters. Boral believes the market will be difficult this  financial year and that the housing sector will remain "broadly flat" for another year.

"It's very much a picture of a marketplace that is moving laterally rather than in any direction, up or down." Mr Kane said.

He added that Boral's construction materials and cement arm recorded solid earnings growth during 2012-13. The signs are also that it will remain strong, while the slower sales are expected from the building products division, which makes bricks, timber products and roof tiles. An annual AUD40m loss for the building products division was not helped by poor returns in the USA although profitability is expected to return to this market late this financial year.