Category — Building Products

On the surface, building products maker Boral had a better December half year than it has in the last couple of years.Net profit rose 65% in the six month period to $153 million, from $92 million in the previous corresponding period.

But the latest result included an $86 million gain on the fair value of its acquisition of an Asian plasterboard business, announced last month ($US135 million gross value).

Excluding this and other significant items in the six months to December 31, net profit slumped 28% to $67 million, from $92 million in the previous corresponding period.

Sales rose 2% to $2.43 billion in the latest half year, from $2.39 billion a year earlier. [Read more →]

The downside of the domestic economy and the minerals sector were seen yesterday in the results of midcap building products group GWA and nickel miner Western Areas.Both were hit by weak demand (and in the case of Western Areas, lower prices) in the six months to December.

Take GWA Group it said yesterday first-half profits were down 60% due to lower building and renovation activity, thanks mostly to the impact of restructuring costs taken in the six month period.

The company revealed a more sedate 9% fall in earnings before interest and tax for continuing operations to $44.8 million for the half year.

That smaller fall better reflected the company’s experience during the year and that was underlined by directors leaving the interim dividend unchanged at 9.5c. [Read more →]