Building products group Boral today reported earnings before interest and tax of $254 million for the half year ended 31 December, up one per cent on the previous year as its selloff of businesses and company restructuring took effect.
The company, which sold off its USG Boral plasterboard businesses and troubled Meridian Brick venture in the United States for US$1.265 billion during the year, unsurprisingly reduced debt levels while also banking $32 million in benefits from its company-wide transformation program.
The company’s profit was achieved on revenue down nine per cent to $2.7 billion as the Australian housing market slowed and the local outlook remains uncertain with continuing weakness in housing and construction.
In Boral’s remaining north American businesses conditions are better with the company expecting a ramp up in demand for building products while its flyash business is expected to be impacted by the Covid-19 pandemic.
The company admitted to experiencing issues with Covid-19 related absenteeism and labour shortages in the United States.
Boral CEO Zlatko Todorcevski said: “Whilst market conditions across the sector remain uncertain, we have made strong early progress to reset our portfolio of businesses.
“…Much work remains to be done but we are well on the way.”
The company decided not to pay an interim dividend.
Picture: Boral Limited
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