Boral sees civil engineering supporting Australian construction volumes

Boral sees civil engineering supporting Australian construction volumes
15 August 2006


In its financial year to the end of June, Boral increased turnover by 10.7% to Aus$4,767m (EUR2,864m) with the EBITDA moving up by a more modest 3.7% to Aus$823m (EUR 494m), while the pre-tax profit declined by 3.1% to Aus$516m (EUR 310m).  The softer Australian housing market provided the main negative effect, the non-residential areas performed better, as did the USA, with Asian profits being modestly ahead overall.

The cement division increased turnover by some 10% to Aus$507m but the EBITDA declined.  Cement shipments improved by 6%, though lime volumes dropped by a quarter because of lower demand from the steel industry.  Average cement prices increased by 3% but operating casts were by up rather more, including an Aus$10m charge relating to the Waurn Ponds cement works, where stage two of the upgrade was completed.  An Aus$27m investment at the Berrima cement plant will double capacity at the No. 7 mill to 0.8m tonnes by next March.  The concrete and quarrying operations increased turnover by 8% and EBITDA by 4%, with volumes growing by 7% in concrete and by 5% in aggregates.  The outlook for infrastructure spending in Australia is favourable and cement price increases of around 4% to 5% have been announced for October along with AUS$5 per tonne for concrete.

Published under Cement News