Property buoys Brickworks as it invests in new facilities

Property development and building products company Brickworks today reported it was emerging from the Covid-19 pandemic with trading conditions strengthening in Australia, but remaining uncertain in the United States where the company makes bricks in the north-eastern states.

The Sydney company’s property division performed strongly with its interests in developing industrial land in a venture with Goodman Group now valued at $727 million.

Brickworks reported an underlying net profit after tax of $146 million for the 2020 financial year, down 38 percent.

Managing director Lindsay Partridge said first quarter earnings in the 2021 financial year were running ahead of the previous corresponding period, with a solid pipeline of work ahead in Australia.

Sales in North America, where the company bought two additional brickmaking businesses in FY20, are below expectations, affected by the pandemic.

Partridge said uncertainties in the US and the effects of the pandemic had caused a fall in non-residential construction.

“There still remains significant uncertainty in this market, with the current surge in infections across many parts of
the United States causing ongoing disruptions to sales activity and manufacturing operations.”

Partridge said Brickworks had been pro-active throughout the pandemic to accelerate several important
growth initiatives.

He said: “Last month we held B20, the biggest product launch event in our company’s history, introducing
an exciting range of innovative new bricks, roof tiles and masonry products to the market.

“We are also in the midst of a significant capital programme that will strengthen our competitive position in a number
of key markets.”

Brickworks completed its Southern Cross Cement terminal in Brisbane (pictured) in 2020, and continued construction of its $75 million Austral Masonry plant in Sydney, readying it for commissioning in 2021.

Partridge said: “At Horsley Park, we have demolished the old brick kiln and associated equipment at Plant 2, paving the way for construction of a new $125 million face brick plant.

“When complete, this will be the most advanced brick plant ever built.”

Partridge said other major projects across the country had been impacted by state border closures that have
restricted the movement of engineering crews and technical staff.

“This has resulted in significant challenges and delays to capital projects in Queensland, South Australia and Western Australia.”

Picture: Bonacci Infrastructure/Southern Cross Cement terminal Brisbane

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