As forecast in a downgrade earlier this month, building products group Boral has reported a lower interim result because of bad weather in the US and Australia.
Boral’s yesterday reported first-half profit fell 6.4% to $200.2 million in the wake of the bad weather.
Revenues rose 2% to $2.99 billion in the half.
Boral said that profit excluding significant items for the six months to December 31 slipped from $213.9 million a year earlier as volumes slowed amid extreme rainfall in key US states and October’s downpours in NSW.
Net profit, which included a $65.2 million gain on the disposal of two businesses, rose by more than 30% to $236.5 million.
It declared a half-franked interim dividend of 13 cents a year, up half a cent on the previous first half.
Growing infrastructure activity helped offset softer residential construction in Australia, but the weather and project delays led to an 8% fall in domestic earnings.
“Boral’s half-year results reflect strong underlying businesses, which were impacted by adverse weather, particularly in North America, as well as project-related volume delays in Australia,” chief executive and managing director Mike Kane said.
“We expect to deliver growth in the second half.”
And directors said shareholders can “Expect higher full-year EBITDA relative to last year for continuing operations, with a skew to the second half.
“The outlook includes ~15% EBITDA growth in US dollars from Boral North America, broadly steady EBITDA from Boral Australia (excluding Property earnings of $30m compared with $63m in FY2018) and slightly lower profits from USG Boral.
Boral shares fell 1.1% to $4.90.
