CSR prospers despite covid headwinds

Building products group CSR has boosted sales and profits across diverse construction markets, announcing full year ended March 31 net profit after tax up 17 per cent to $146.1 million.

A slowdown in residential construction was more than made up through strong cost control and operational efficiency increases, with the company’s building products segment reporting earnings before interest and tax (EBIT) up eight per cent to $183.4 million.

The segment boosted EBIT margin from 10.7 per cent to 12 per cent in the year, even while residential construction activity declined four per cent.

CEO Julie Coates said: “The pleasing result was achieved while making important changes to reorganise the building products business.

“We are now well positioned to deliver our strategy across more complete customer solutions, optimising our supply chain and leveraging core capabilities across all products and markets.”

In other areas property performed well following the sale of the next stage of CSR’s Horsley Park industrial development in Sydney.

Aluminium EBIT was down from $59.6 million to $23.4 million reflecting a sharp decline in aluminium prices due to the covid-19 pandemic.

CSR said the outlook in construction was mixed, with its biggest market in detached housing likely to see activity supported by HomeBuilder commencements.

Alterations and additions, though a small segment, is expected to continue to be strong, and medium density housing is likely to be more resilient than high rise construction, which has seen a decline in approvals.

Picture: CSR

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