Home building products maker CSR's half year profit has more than doubled as a result of the company's restructuring and cost savings.
Managing director Rob Sindel said volumes for the group’s building and glass products had only showed modest improvement, but low interest rates and climbing residential approvals were contributing to improvements in the housing industry.
“We are optimistic that residential construction markets will continue to improve following steady growth in building approvals combined with the record low interest rates,” he said in a statement.
CSR’s net profit of $46.1 million in the six months to September 30 was up from $16 million in the previous corresponding period.
Excluding one-off financial items related to the company’s restructuring, profit was $36.2 million, up from $18.9 million in the previous corresponding period.
Earnings improved in CSR’s building products, Viridian glass, aluminium and property divisions.
“The increase in CSR’s earnings is driven by improved pricing and lower operating costs resulting from a number of restructuring initiatives completed over the last few years,” Mr Sindel said.
The company expects its full year profit, before one-off items, will be near $70 million. CSR also lifted its forecast for Australian housing starts in the year to the end of March 2014 by five per cent.