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[May 2008]
Boral Announces Updated Guidance for FY2008
Boral Limited (Sydney, NSW, Australia) has advised that due to the deterioration in market conditions in the USA and poor weather in the Eastern States of Australia and the USA in the March quarter, it is revising its guidance for the FY2008 result.
The US housing market downturn has continued to deepen. Annualised March quarter housing starts and permits (non-seasonally adjusted) were both around 900,000, which was around 25% below the December half. So far, the normal spring recovery is not evident.
As a result, Boral anticipates further reductions in plant output, particularly in Bricks where production is expected to be around 40% lower than in the first half. Poor weather and weakening markets also adversely affected the US construction materials businesses in the March quarter. The second half result for the US business will be significantly lower than in the first half.
Whilst weather conditions adversely affected the Australian East Coast businesses in the March quarter, both the Australian Construction Materials and Australian Building Products segments are expected to deliver FY2008 results which are ahead of the prior year.
Boral’s CEO and Managing Director, Rod Pearse, said: “Although we have seen improved results from the Australian businesses and have taken steps to reduce the earnings impact of the US downturn, these actions will be insufficient to offset the impact of the continued deterioration in the US housing market and poor weather in the March quarter”.
Commenting on Boral’s outlook, Mr Pearse said: “The IBES range of current analyst forecasts is $234 million to $256 million with an average of $249 million. We currently expect Boral’s PAT for FY2008 to be around the bottom end of analyst forecasts”.
www.boral.com.au
ENDS