The building products manufacturer’s net profit after tax for the half year ended 31 December, 2016 was $153 million, 12 per cent ahead of the previous year.
Earnings before interest and tax (EBIT) and significant items across the group increased 6 per cent to $211 million. The company noted this was due to improvements in key areas, which were then offset by the declined earnings from Boral’s WA bricks business and its LNG and Barangaroo projects.
Construction materials and cement – Boral’s largest division – delivered EBIT of $164 million, three per cent lower than the year before.
Boral CEO and managing director Mike Kane said the pricing gains, margin improvements and higher property earnings were ‘more than offset’ by the WA market decline, but regardless he expected to deliver solid results this year.
“With Australia’s construction activity transitioning from resources to multi-residential and infrastructure, we are seeing benefits from the ramp-up of Australia’s multi-year pipeline of major roads and infrastructure work,” Kane said.
“These increases in activity have broadly filled the earnings gaps, and we expect growing benefits from major infrastructure projects in the coming years.”
According to the half year report, sales revenue of $2.1 billion was down 5 per cent compared to the previous year, with revenue from eastern Australia offset by the impact of equity accounting for US Bricks.
As previously reported by Quarry, Boral restructured its building products divisions in March 2014.