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- Boral (BLD) says it is well-placed to satisfy Australia’s multi-residential and non- residential construction market when demand picks up
- The decline in activity, which was most prevalent in NSW, resulted in a 9 per cent drop in revenue for the six months ending December 31, 2020
- However, any further decrease was offset by a strong performance in its North American segment
- With net debt remaining higher than the company’s target of $1.5 billion, there will be no interim dividend paid
- Boral is up 0.28 per cent to $5.42 per share
Boral (BLD) says it is well-placed to satisfy Australia’s multi-residential and non- residential construction market when demand picks up.
Prolonged weakness in the sector, most prominently in NSW, drove a 9 per cent drop in revenue for the six months ending December 31, 2020, from $2.99 billion to roughly $2.7 billion. The slide was further enhanced by the flow-on of lower prices from the six months before.
However, any further decline in sales was offset by a strong performance in the company’s North American segment, characterised by a strong order book and the continued ramp-up of production volumes. Additional benefits are also expected from price increases that were unveiled in the latter portion of the half.
Following a portfolio review last year, Boral said it would explore third-party interest in its North American segment in an effort to create greater value beyond its current business improvement initiatives.
With strengthening housing demand, this is expected to include a greater focus on the company’s fly ash business, including sourcing fly ash from alternative suppliers.
“Overall, our priorities are clear: the building of a stronger, better performing, more customer- focused Boral, with a portfolio of businesses that are delivering strong returns for our shareholders, in an organisation of proud and engaged people,” said Zlatko Todorcevski, Managing Director and CEO of Boral.
Since net debt remains higher than its target of $1.5 billion, Boral will not issue any dividends for the period.
“Much work remains to be done but we are well on our way,” added Zlatko.
Boral is up 0.28 per cent to $5.42 per share at 11:09am AEDT.
