Building products supplier Boral has reported a 9.2 per cent fall in first half net profit and says the outlook for the second half of the year ‘‘remains difficult’’.
The building materials group said net profit after tax for the six months to December 31, 2009, fell to $67.9 million, from $74.8 million in the prior corresponding period.
Operating revenue for the first half of 2009/10 fell 10.2 per cent to $2.330 billion, from $2.594 billion.
‘‘The outlook for the second half of the year remains difficult with historically low market conditions remaining in the United States and mixed short term prospects in our key markets in Australia,’’ the company said in a statement on Wednesday.
New Boral chief executive, Mark Selway, who began on January 1 this year, said that despite the difficult conditions in the US and a slowdown in non-residential activity in Australia, the company’s full-year profit was expected to be ‘‘broadly in line with current concensus’’.
But he said forecasting was difficult in the current economic climate.
‘‘Subject to current levels of building starts, weather conditions and roughly consistent exchange rates, we expect Boral’s full-year profit to be broadly in line with consensus of $123.5 million,’’ Mr Selway said in a statement. ‘‘Our immediate priority is to manage the business through the downturn and capitalise on opportunities as the market recovers.’’
Boral posted net profit of $142 million in 2008/09.
The company had declined to issue guidance at its annual general meeting in October last year.
AAP
