For the 12 months ended 30 June 2017 (FY2017), Boral’s profit after tax increased 28 per cent to $343 million when compared to the previous year.
This was despite a net loss of $46 million for “significant items”, related to the company’s bricks business in Western Australia and its billion-dollar acquisition of US company Headwaters in late 2016.
However, Boral CEO and managing director Mike Kane said the company had delivered strong earnings while undergoing a ‘major strategic transformation’.
“The [16 per cent to $460 million] increase in EBIT (earnings before interest and tax) reflects Boral’s high performing business in Australia, supplying continued strong east coast residential markets as well as growing infrastructure,” Kane said. “Boral’s largest division, Boral Australia, delivered a strong 11 per cent lift in EBIT to $349 million.”
Revenue from Boral’s quarries increased 5 per cent to $424 million, while revenue from asphalt and concrete increased 7 per cent to $691 million and 2 per cent to $1.3 billion, respectively. Revenue from cement was reported as “steady”, with total sales up by 2 per cent.
Local leverage
Australian residential activity continued to produce steady sales, with Boral capitalising on the ‘historically strong’ levels of activity in this sector. Its roads, highways, subdivisions and bridges sector was also estimated to have increased by 14 per cent, with a further 15 per cent forecast for FY2018.
Although non-residential activity was estimated to be 3 per cent lower in FY2017 compared with the prior period, it is expected to increase in FY2018.
Projects that were recently awarded to Boral include Sydney Metro, Kingsford Smith Drive in Queensland and stage two of the Warrego Highway, Queensland.
Boral also secured a fixed plant concrete supply for the Toowoomba Second Range Crossing project. The Mitchell Freeway extension in Western Australia was completed, while Boral commenced concrete supply for WA’s Forrestfield Airport Link that is set to continue until 2020.
Boral comprises of three divisions – Boral Australia, Boral USA and Boral Gypsum.
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