Booming Property Market to Boost Boral Profit 46 per cent

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Thursday, July 23rd, 2015
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Boral expects to achieve a net profit before significant items of $240 million to $250 million in the year to June 30, an improvement on $171 million in 2014/15.

“This result is underpinned by a number of factors including strong earnings in June and higher-than-expected property sales,” Boral said.

Shares in Boral rose nine cents, or 1.4 per cent, to $6.45.

In the first half of the 2014/15 financial year, Boral’s net profit of $104.5 million included a net negative impact of $7 million from significant items – mainly redundancy and restructuring costs.

Operating earnings across the company’s divisions are expected to be broadly in line with its expectations outlined in February and May, the company said.

The major markets for Boral’s products include residential and non-residential construction, and the engineering and infrastructure markets.

In February, Boral said higher dwellings activity – especially apartment blocks – in NSW, Victoria and Queensland were expected over the full year.

Non-residential construction activity was expected to remain steady.

Construction of roads, highways, subdivisions and bridges, and other engineering work, were expected to remain softer over the full financial year, compared with prior years.

But a solid pipeline of roads and infrastructure activity is expected to flow through from 2015/16.

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