Building products maker CSR's full year profit has jumped by 43 per cent to $125.5 million, its best result in five years.
And the company says it’s well positioned for more strong profits as the building sector improves. Its net profit was helped by a $33 million reduction in asbestos liabilities.
And before significant items, its profit was up a hefty 82 per cent to $146.5 million.
The lift in profit to the highest level in five years reflects strong performance from all divisions, CSR managing director Rob Sindel said.
“The hard work over the last few years to improve our customer service and the efficiency of our operations has strengthened CSR’s foundations and positioned us to increase returns as construction markets improve,” Mr Sindel said.
“The fundamentals are in place. Our operations across all key businesses are now safer, more energy-efficient and have lower cost structures.”
Mr Sindel said CSR was responding to changes in its core markets.
“Over the past 18 months we have increased our exposure to multi-residential construction through acquisition and investment, and accelerated our investment in digital services for customers and in developing building systems which are smarter, faster and easier to use,” he said.
He said the recent commencement of the Boral CSR Bricks joint venture will further improve the competitiveness of the business.
In the company’s aluminium business, operational improvements drove increased production, and with higher aluminium prices, earnings more than doubled.
“We continue to increase our hedging position when pricing opportunities arise,” Mr Sindel said.
CSR BUILDS ON PROFITS – results for the year to March 31.
- Net profit $125.5m, up 43pct from $88.1m in the previous corresponding period
- Net profit before significant items $146.5m, up 82pct on $80.5m
- Earnings $235.4m, up 87pct from $125.7m
- Final dividend of 20 cents per share, compared to 10 cents for pcp.