Australia: Boral has made a loss of US$192m for its 2012 – 2013 financial year which ended on 30 June 2013. In the previous year it made a profit of US$160m. The building materials supplier attributed the loss to capacity reduction, organisational restructuring and wider problems with the Australian market.
"Like the rest of the industry, Boral's businesses have been contending with low levels of activity, unfavourable mix shifts in demand, increased competition and unrecovered costs associated with the carbon tax. However, in line with the turnaround strategy that I announced in late 2012, we have been relentless about reducing costs, generating cash and reducing capital expenditure, which positions Boral well as markets improve," said Boral's chief executive officer and managing director, Mike Kane.
Boral's sales revenue rose by 5% to US$4.71bn in the year to 30 June 2013 from US$4.26bn in the prior year. Its profit after tax but before significant items rose by 3.2% to US$94.3m from US$91.4m. Earnings before interest and tax (EBIT) before significant items rose by 14% to US$206m from US$180m.
By business sector, Boral's Construction materials and Cement division saw total sales revenue rise by 7% to US$2.87bn from US$2.67bn. Operating profit rose by 17% to US$243m from US$208m. Kane explained in the company's results that the improvement came from major project activity, prior year acquisitions and property sales. In the 2013 – 2014 financial year the division's performance is expected to remain strong, despite lower property sales and reduced major project work. However, overall the results in 2013 – 2014 are not expected to exceed those in 2012 – 2013.
