Boral’s steady result in soft markets

Building and construction group Boral (ASX: BLD) today reported annual results little changed from the previous year, a creditable result given a slump in housing construction in Australia and the United States.

Despite a 15 per cent decline in Australian housing starts and lower than expected growth in the US, Boral managed revenues of $5.9 billion for the year in line with the previous year.

EBITDA was $1,037 million, two per cent up on the previous year.

Boral managing director, Mike Kane said: “Boral’s full year results demonstrate the benefits of strong infrastructure activity in Australia and resilience of our underlying businesses, together with implementation of improvement initiatives and cost reduction programmes.”

Boral employs 25,000 in three main businesses, construction materials in Australia, the Asian plasterboard venture, USG Boral, and building products and fly ash in North America.

In Australia Boral achieved steady revenues despite the slowdown in housing and lower concrete volumes.

Revenue in North America was up slightly and EBITDA was up 10 per cent underpinned by growth in building products including roofing.

Income from USG Boral was down 10 per cent , thoughthere was top line growth in Thailand, China, Vietnam and India.

Kane said: “In Australia we expect continued infrastructure growth in coming years,coupled with forecasters expectations of a more modest downturn in residential construction relative to past cycles.”

Picture: Boral

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