Shares in building products supplier Boral bounced more than 4% yesterday, despite it trimming dividend after reporting a 9.2% fall in first half profit.
On top of that, the company said the outlook for the second half of the year "remains difficult".
But the shares rose 4.4% to $5.72, a rise of 24 cents on the day.
That was a solid outcome after the market turned tail and retreated in afternoon dealings.
Boral said net profit after tax for the six months to December 31, 2009 fell to $67.9 million from $74.8 million in the prior corresponding period.
That was after a 10.2% fall in revenue to $2.330 billion from $2.594 billion.
"The outlook for the second half of the year remains difficult with historically low market conditions remaining in the United States and mixed short term prospects in our key markets in Australia," the company said in a statement to the ASX.
New Boral chief executive, Mark Selway, who replaced Rod Pearse from January 1 this year, said that despite the difficult conditions in the US and a slowdown in non-residential activity in Australia, the company’s full-year profit was expected to be "broadly in line with current consensus".
But he said forecasting was difficult in the current economic climate.
"Subject to current levels of building starts, weather conditions and roughly consistent exchange rates, we expect Boral’s full-year profit to be broadly in line with consensus of $123.5 million," Mr Selway said in a statement. "Our immediate priority is to manage the business through the downturn and capitalise on opportunities as the market recovers."
The company had declined to issue guidance at its annual general meeting in October last year.
Interim payout to shareholders was set at 7c a share, down half a cent on the previous corresponding period. Earnings per share were 11.4c.
Earnings Before Interest and Tax (EBIT) fell 15% to $133 million due to increasing US losses and the absence of the $7m Adelaide Brighton dividend following the divestment of Boral’s 17.6% stake in May 2009.
"Conditions across Boral’s major markets were mixed," the company said in the statement to the ASX.
"In Australia, buoyant infrastructure spend partially offset a weak but recovering housing market and significant softness in commercial construction activity.
"In the USA, the housing market bottomed at an annualised rate of 570,000 starts in the half year, down 25% year-on-year, and more than 60% below the 50-year average of 1.5 million.
"Solid market recoveries in Asia combined with excellent operational performance delivered improved results in the Group’s construction materials operations and the plasterboard joint venture."
Meanwhile share registry group, Computershare met its upgraded guidance of January after lifting first half net profit by almost 30%.
But it surprised by suggesting the second half of the financial year may be softer.
Despite the clouded outlook, the shares ended down 22c at $11.73, a fall of 1.8% after the market retreated in afternoon trading.
Computershare said profit rose 29.8% to $US169.88 million for the six months to December 31.
In mid-January it forecast that "management earnings per share for that period will be approximately 20% higher than they were in both the first and second halves of financial year 2009".
The company said EPS of 31.38 cents for the six months ended 31 December 2009 represented an increase of 20% over the prior corresponding period.
Reported earnings per share were 30.57 USc.
The interim dividend has been declared at 14 Australian cents, up from 11 cents.
The company said the result had been underpinned by lower costs despite acquisitions and large project-related work in relation to Hong Kong initial public offers (IPOs) and the US Mutual Fund proxy solicitation business.
Revenue rose 3% to $US800.76 million, due largely to contributions from the US bankruptcy administration business acquired in April 2009, the US Mutual Fund solicitation business and Computershare Voucher Services in the UK, and IPOs in Hong Kong.
"Since the start of 2010, markets globally have been less buoyant than they were late last year, and there is no certainty that some of the larger transactions behind the strong first half result will be matched in the second half," Computershare chief executive Stuart Crosby said on the statement to the ASX.
"These factors, combined with the fact that over the past few years the first half has been stronger than the second half, leave us anticipating management earnings per share growth for the full 2010 financial year of between 10 per cent and 15 per cent.
"This guidance assumes that equity, interest rate and foreign exchange market conditions remain broadly consistent with current levels for the rest of the financial year."
Mr Crosby said Computershare remained in a strong position financially and looked to continue to demonstrate the benefits of the investments it had made in acquisitions, technology and new products over the past two years.
And Suncorp Metway shares ended up 1.8% after the company upgraded interim earnings.
The shares rose 16c to $9.09 at the close.
