Boral shares are down 6 per cent to $4.64 this morning after a profit warning. Resources reporter Nick Toscano has been listening to the Boral conference call and files this:
Australian building materials giant Boral’s profits have taken a hit following extreme rainfall across the country’s east coast and construction delays on major government infrastructure projects. The company also warned investors on Monday that its United States-based operations have also been been slowed down by above-average rainfall in key states.
Ahead of delivering its half-year results later this month, Australia’s largest building materials supplier said it expected earnings to be slightly lower that the same period in the previous year. Net profit after tax for the six months to December is expected to be $200 million, the company said, while its underlying earnings are expected to be about $485 million.
“Underlying demand remains strong and the business is delivering good returns,” Boral said of its Australian operations. “However, first-half earnings have been impacted by volume lags and delays to major projects and infrastructure, extreme rainfalls on the east coast in October and a less favourable product and geographic mix shift.”
Boral’s full-year earnings in Australia are now expected to be similar to the previous year, down from earlier forecasts of high single-digit growth.
The company’s full-year forecast for its businesses in North America has been slashed to 15 per cent, down from earlier forecasts of 20 per cent, the company said on Monday. The USG-Boral division has also been affected by typhoons in South Korea, and Boral announced it is working on a “fair market valuation” of the company to decide whether or nor to proceed with a previously announced plan to acquire USG’s 50 per cent stake in the joint venture. “Discussions with industry players are also continuing”, it told the market.
from Just News Viral http://bit.ly/2D3WY7u
0 Comments