Adelaide Brighton predicts 2015 sales gain

Adelaide Brighton predicts 2015 sales gain
28 May 2015

Australian construction materials group Adelaide Brighton says cement and clinker product sales volumes should be "similar to or greater than" levels in the prior year.

Lime sales, which declined 7.7 per cent in 2014 after a downturn in the gold sector, were also anticipated to be similar or slightly higher than last year.

The group told shareholders at today's annual general meeting that after last year's acquisitions, Adelaide Brighton was expecting to book around $4.4m worth of synergies in 2015.

The company added that price increases for all its products were announced in 2015, which were supported by strengthened demand and the weakening Australian dollar, particularly in Sydney, where industry is having to source supply from further afield after depleting traditional sources.

However, the Australian dollar, assuming it holds around US75c, would lead to an increase in import costs totalling $7m, while South Australian gas related fuel costs would rise by $2m, albeit below earlier forecasts, the group said.

On the other hand, Adelaide Brighton said it was benefiting from the scrapping of the carbon tax, transport cost savings from cheaper petrol, and the full-year benefits of last year's corporate overhaul.

The group said two land sales could be completed in 2015 for combined gross cash proceeds of around $44m

Published under Cement News