Adelaide Brighton posts modest rise in net profit, Australia

Adelaide Brighton posts modest rise in net profit, Australia
22 February 2013

Australian building materials producer Adelaide Brighton has posted a 3.8 per cent rise in net profit as mining and resources projects in certain regions offset weakness in residential and commercial construction.

In the 12 months to 31 December, the company recorded a net profit of AUD154.1m from AUD148.4m the year before, driven by mining and resource projects in South and Western Australia and the Northern Territory. 

A weak residential market in Victoria hit cement sales while depressed market conditions in Queensland hurt clinker sales.

Commenting on the results, CEO Mark Chellew said: "While net profit increased only modestly in 2012, we see this as a good result considering the challenges facing the industry.”

Adelaide Brighton also blamed the carbon tax for taking AUD3m from earnings and increasing energy costs by eight per cent. Chellew said the carbon tax, environmental regulations and cost pressures were likely to affect the outlook for 2013 but reaffirmed the company's commitment to reducing its carbon footprint by using imported materials and alternative fuels.

Published under Cement News