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[May 2002]
Underlying Profits Increase at Boral
Boral Ltd - the Australian brickmaker and building materials company - announced a net profit after tax and minorities of A$92.2 million for the half-year ended 31 December 2001, a 27.7% increase in underlying profit (i.e. before profit from disposal of businesses) compared with the previous year. Earnings per share for the half-year were steady at 16.2 cents. Sales revenue of A$1.73 billion was 4.7% above the same period in 2000 and 6.5% above the June 2001 half-year.Compared with the half-year to December 2000, underlying EBITDA increased by 4.2% to A$255.7 million and underlying EBIT improved by 5.5% to A$161.1 million. Compared with the six months to June 2001, however - when the Australian building and construction cycle was at its lowest, EBITDA improved by 24% and EBIT by 47%.
Managing Director and CEO Rod Pearse said: "Boral's half-year profit of $92.2 million represents a significant improvement in the Company's underlying performance. The Australian building and construction cycle has now passed through a very sharp and major downturn. While demand for dwellings has recovered quickly from cyclical lows, demand from the non-dwelling and roads, highways and subdivisions market segment remains very depressed.
"Boral has demonstrated an ability to manage more effectively during difficult conditions, compared with previous cyclical downturns, which will benefit us substantially as the upturn gathers momentum and beyond. The strong foundation we have been building over the last two years, through our focus on operational improvement, overhead cost reduction, capital management and portfolio reshaping positions us well for the future."
24% of Boral's revenues are sourced from its USA operations where good margin management and a positive exchange rate impact resulted in a 3.5% profit improvement of A$59.2 million. A strong result was delivered by the plasterboard joint venture with Lafarge in Asia, lifting Boral's share from breakeven last year to A$10.6 million in the last six months.
Employee numbers dipped 3.2% in the period - from 11,995 to 11,608 - while sales per employee rose from A$138,000 to A$149,000 (up 8%).
ENDS