Half-year profit up at Boral Ltd

Boral deliver a further 9% year-on-year growth in underlying half-year profit after tax

BORAL Ltd today reported a 9% increase in underlying profit after tax to A$149 million for the half year ended 31 December 2016. The result reflects a solid performance in Australia combined with strong earnings growth from Boral USA and USG Boral.

After significant items, Boral reported a net profit after tax of A$153 million, 12% ahead of the previous year.

Sales revenue of A$2.1 billion was down 5% on the prior year as revenue growth from strong activity in Eastern Australia and growth in the USA was offset by the impact of equity accounting for US Bricks following the formation of the Meridian Brick joint venture on 1 November 2016, coupled with the completion of Barangaroo and LNG projects.

Earnings before interest and tax (EBIT) increased 6% to A$211 million, underpinned by stronger earnings from Boral USA and USG Boral.

While earnings growth was also delivered in key areas of Boral Australia, improvements were offset by the earnings impact of the sale of Boral’s 40% share of the Boral CSR Bricks JV in November 2016, the decline in earnings from Boral’s remaining bricks WA business and lower earnings associated with the completion of the LNG and Barangaroo projects.

A net gain of A$4 million for significant items includes a net benefit from divestments, including Boral’s 40% share in Boral CSR Bricks and the formation of the Meridian Brick JV (USA), partially offset by transaction costs incurred in relation to the Headwaters Inc. acquisition.

Boral’s chief executive officer and managing director, Mike Kane (pictured), said Boral were continuing to perform and grow, with significant progress being made to deliver the company’s strategic priorities. ‘We have been positioning Boral for improved performance and growth, and it’s delivering benefits, which we can see in the half-year results,’ he commented.