Seven Group Holdings (SGH), the industrial conglomerate controlled by the Stokes family, has increased its interim dividend by 7 per cent to 32 cents per share. This decision follows the company’s announcement of a statutory net profit after tax of $473 million for the first half, a 1 per cent increase. SGH is a diversified industrial business with operations including construction materials, industrial equipment and hire. The group distributes Caterpillar equipment through WesTrac and also operates the Coates industrial hire business.
Boral, the cement and asphalt business, emerged as the top performer within SGH, reporting a 10 per cent rise in EBIT to $284 million. This growth was attributed to increased volumes and successful price increases. However, other divisions experienced mixed results. WesTrac’s EBIT saw a slight decrease of 1 per cent to $348 million, while Coates experienced a 9 per cent drop in EBIT, settling at $142 million.
SGH chief executive Ryan Stokes highlighted the company’s ability to improve margins across its various operations. “It demonstrates the strength and resilience of our diversified industrial businesses,” Stokes said. The company continues to focus on operational efficiencies and leveraging its market position across its key sectors.
In other news, SGH recently partnered with American steel company Steel Dynamics in a $13.2 billion buyout proposal for BlueScope Steel. However, the BlueScope board rejected the proposal last month. SGH’s plan involved acquiring the Australian operations, including the Port Kembla steelworks in Wollongong, while Steel Dynamics would take ownership of the American assets. Steel Dynamics had previously made three solo buyout proposals.
