In spite of soft residential markets in Australia and the US – and bad weather earlier in the year – Boral Ltd has continued to perform in line with expectations during the nine months to the end of March.
The building materials supplier says it remains on track to deliver a turnaround in annual net profit; the group’s year to date performance supports prior guidance for the full year net profit to be between $160 million and $175 million, compared to an equivalent of $131.6 million last year.
Boral reported an annual loss of $90.5 million in 2009-10, after taking $285 million in writedowns on loss-making businesses.
The release of these figures saw an immediate response, with Boral shares increasing by 21 cents, or 4.5 per cent, at $4.86.
In a trading update released last week, the company explained that in ??the nine months to the end of March, the group has continued to perform in line with expectations, despite continued weather-related delays and a softening of residential building across many parts of Australia. The group?s results continued to benefit from a positive currency translation effect in the period, most notably from the strengthening of the Australian dollar against the US dollar??.
Sources: Business Spectator, Sydney Morning Herald